By: Rami Sameeh
Abu Dhabi - Mubasher: The Emirati Minister of State for Financial Affairs said that the UAE is expecting selective tax annual revenues to reach AED 2 billion ($544.5 million).
The selective tax will be imposed on unhealthy products such as cigarettes, tobacco, and its derivatives, as well as soda and energy drinks, beginning this year, Obaid Humaid Al Tayer expects.
The selective tax will have a rate of more than 100%, with each of the Gulf states deciding on its own rate, he added.
Members of the GCC previously signed a unified agreement to apply a selective tax to unhealthy products, and a value-added tax (VAT), to support public revenues, after the fall of oil prices.
All of the GCC countries will begin applying the VAT between January 2018 and January 2019, Al Tayer added.
The UAE is expecting to achieve revenues of AED 10 billion to AED 12 billion ($2.7 billion - $3.2 billion) from the VAT in its first year.
