New Items Added To Sin Tax

The UAE Cabinet has expanded the list of excise taxable products to include sweetened beverages, sugary drinks and electronic smoking devices.

The step has been taken to ‘reduce consumption of unhealthy goods and modify consumers behaviour’. The excise tax also known as Sin Tax is levied on specific goods, which are considered to be harmful for human health and the environment and was introduced in 2017.

According to the new list, a tax of 50 per cent will be levied on products with added sugar or other sweeteners, whether in the form of a beverage, liquid, concentrate, powders, extracts or any product that may be converted into a drink. Apparently, the manufacturers are required to clearly mention the sugar content on the product label enabling customers to make aware decisions.

Other items that have been covered under the new list are electronic smoking devices, which were legalised earlier this year. A tax of 100 percent will be levied on all the devices whether or not they contain nicotine or tobacco, as well as the liquids used in electronic smoking devices.

These new taxes will come in effect from 1 January 2020.

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