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Sun 1 Oct 2017 07:11 PM

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Federal Tax Authority says 1,610 items subject to excise tax

Number of items on the list is subject to increase in the future if new brands are introduced, said FTA

Federal Tax Authority says 1,610 items subject to excise tax
Khaled Al Bustani., director-general of the Federal Tax Authority

A total of 1,610 commodities are subject to the UAE's new excise tax, the Federal Tax Authority has announced. 

Sixty percent (974) of the items are classified as soft drink products, which increased 50 percent in price from Sunday.

Tobacco and its derivatives, like shisha, make up 26 percent (417), while 14 percent (219) of the list are energy drinks. Both tobacco and energy drinks have increased 100 percent. 

Khaled Al Bustani, director-general of the Federal Tax Authority, said the UAE Excise Tax has been adopted to reduce the consumption of goods that damage people’s health.

The Federal Tax Authority has prepared a list of taxable commodities to assist in the collection process, news agency WAM reported.

The number of items on the list could increase in the future if new brands of tobacco products, soft drinks or energy drinks are introduced.

The Federal Tax Authority announced last week that excise tax collections will only be accepted in e-Dirhams, a decision that is said will boost the government's efforts to adopt an electronic system, as well as providing a high-level of security and efficiency in payments.

The UAE is the second Gulf country after Saudi Arabia to apply excise taxes.

According to preliminary estimates, the UAE tax authority expects government revenues to increase by $1.9 billion (AED7bn) after the collection of the excise tax.