Abu Dhabi - Mubasher: The Emirati President Sheikh Khalifa bin Zayed Al Nahyan has issued on Monday a federal decree-law on excise tax, as reported by Emirates News Agency (WAM).
The new tax will be imposed on selected products, as determined by the UAE council of ministers and recommended by Sheikh Hamdan bin Rashid Al Maktoum, the deputy ruler of Dubai and the UAE minister of finance, and the chairman of the federal tax authority (FTA).
Excise tax rates shall be imposed on the "Excise Goods", provided that the tax rates do not exceed 200% of the excise price.
Back in December 2016, the Supreme Council of the Gulf Cooperation Council (GCC) issued a resolution on excise goods list, which contains tobacco products, energy drinks and certain soft drinks.
Hamdan bin Rashid Al Maktoum said that the UAE takes a great leap forward, as it is making remarkable progress in plans to establish a sound legislative infrastructure to support the UAE’s tax system and make sure it meets and exceeds international best practices.
"The project diversifies the government’s revenue streams and boosts its resources, which, in turn, will strengthen the economy and ensure its sustainability," he added.
"The excise tax, in particular, will help us build a healthier and safer society. This tax is set to discourage the consumption of products that negatively impact the environment and, more importantly, people’s health, while the revenues it generates will go towards supporting advanced services for all members of society,” the minister further indicated.
