1,610 items under selective tax harmful for health, says ministry

Drink cans right from the fridge

Abu Dhabi / WAM

The number of commodities covered by the UAE’s selective taxation has been announced as 1,610 items, 60% of which are classified as soft drink products, 26% as tobacco and its derivatives, and some 14% as energy drinks, all deemed as the most damaging to the public’s health.
The Federal Tax Authority has prepared a list of taxable commodities to assist in the collection process by the authorised parties, the manufacturing companies or importing companies. The number of items on the list is subject to increase in the future if new brands are introduced, if they are tobacco products, soft drinks and energy drinks.
The selective tax rate varies between 50 and 100 percent.
In more detail, the number of commodities classified as soft drinks, according to the list prepared by the Federal Tax Authority, is 974, while those classified as tobacco products and its derivatives, reached 417. The number of energy drinks was set at 219.
The Federal Tax Authority announced earlier this week that selective tax collections will only be accepted in e-Dirhams, a decision that will boost the government’s efforts to adopt an electronic system.
According to preliminary estimates, the authority expects government revenues to increase to AED7 billion after the collection of the selective tax.

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