UAE Excise Tax On E-cigarettes, Sugary Drinks To Start On December 1

The excise tax on electronic smoking devices and sweetened beverages will be effective as of December 1, 2019, according to the Federal Tax Authority (FTA).

The authority called on producers and importers of the products to register for the excise tax system at the earliest to avoid late registration fines.

The UAE initially introduced 50-100 percent excise tax on harmful goods such as soft and energy drinks and tobacco in October 2017 in a bid to improve public health and cover the costs of public services through the newfound government revenue.

At the time, over 1,700 items were subjected to the excise tax, with 60 percent being soft drinks, 26 per cent being tobacco products and 14 per cent being energy drinks.