The Federal Tax Authority (FTA) has recently expanded the list of products eligible for excise tax, also known as 'Sin Tax', to promote and create awareness towards healthy lifestyle. In order to do so, the list expanded to include sweetened drinks, electronic cigarettes and e-liquids, with implantation starting from 1 January next year.
According to the government news agency WAM, FTA has also listed down the products clarifying what comes under the excise tax and what does not.
Products covered under sweetened drinks:
- FTA identifies sweetened drinks as any product to which a source of sugar or sweetener is added and is produced as either a ready-to-drink beverage
- Concentrates, gels, powders, extracts, or any other form that can be converted into a sweetened drink
- Sugar includes any type of sugar determined under Standard 148 of the GCC Standardisation Organisation and any subsequent relevant standards
- Sweeteners include any type of sweeteners determined under Standard 995 of the GCC Standardisation Organisation and any subsequent relevant standards.
Drinks Exempted From The Tax
- Ready-to-drink beverages containing at least 75 percent milk
- Baby formula or baby food
- Beverages consumed for medical uses
- Beverages consumed for special dietary needs
- Beverages listed under the heading of General Requirements for pre-packaged Foods for Special Dietary Use
E-cigarettes and E-liquids
- All liquids used in electronic smoking devices and tools and the like, whether or not containing nicotine or tobacco.
- E-cigarettes refer to all electronic smoking devices and tools and the like, whether or not they contain nicotine or tobacco.