100% Tax on Tobacco & Energy Drinks in UAE… Starting Today

Get ready folks because the day has finally come: October 1 marks the launch of the new excise tax being rolled out across the UAE.

Also known as a ‘sin’ tax, consumers can expect a 50% tax on carbonated sugary drinks, and a 100% tax on tobacco products and energy drinks (…we hope you stocked up on Red Bull!)

How much will the excise tax cost me?

The excise tax will be built into the prices of goods, so you won’t be scrambling to calculate how much extra you’ll have to pay at the cashier. The new tax will target products that have been deemed harmful to human health.

Soda drinks are expected to rise from around AED 2 to AED 3, tobacco cigarettes will cost around AED 20, and energy drinks will increase to around AED 16.

VAT begins January 1, 2018

VAT will begin on January 1, 2018, taxing everything from utility bills to jewellery, make-up, perfume, smartphones and entertainment. About 94 food products will be exempt from the VAT, along with healthcare and education.

Will the new excise tax change the way you spend? Let us know your thoughts…