Excise tax to go into effect from October 1

Dubai / WAM

The planned Excise Tax is set to go into effect at the beginning of October 2017, announced the Federal Tax Authority (FTA) at a press conference in Dubai on Wednesday.
The new tax will be imposed on carbonated drinks by 50%, and tobacco products by 100% and energy drinks by 100%. The tax affects specific “Excise” goods that are produced in the UAE, imported into it or stockpiled in the Emirates, as well as excise goods released from a designated zone. The Excise Tax will be applied as per the Federal Decree-Law No. (7) of 2017 on Excise Tax and Cabinet Decision No. (37) of 2017 on the Executive Regulation of said Decree-Law, which was approved by the Council of Ministers on September 13, in a meeting chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
To obtain a transaction number, the Authority stated, individuals or businesses would declare the Excise Goods being imported, as well as the quantity and the port of entry using the
e-services on the FTA’s website.