Tuesday May 23, 2017
DUBAI: The UAE Ministry of Finance has announced a selective tax of 100 percent on tobacco and energy drinks and 50 percent on carbonated beverages on Tuesday.
It was announced in a tweet of UAE Ministry of Finance after the meeting of the board directors of Federal Tax Authority (FTA) that was chaired by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance.
It is also stated that new taxes will be applied in the fourth quarter of this year.
International transportation, commodities and exports, health and education services, gold imported for investment purposes are exempted from taxes.
Last year, UAE President Shaikh Khalifa had issued a decree setting up the Federal Tax Authority (FTA) which is responsible for setting up and maintaining records on taxpayers and taxes paid. The authority will also issue guidelines and clarifications to taxpayers on matters related to federal taxes and related fines.
The UAE would also implement tax over the next few years including a Gulf Cooperation Council -wide VAT tax, which will start in 2018.
The list of items that will come under new taxation system would be utility bills (water, electricity, internet), tobacco, soft and energy drinks, watches, electronics, entertainment, smartphones, jewelry and luxury cars.
The UAE expects revenue through only tobacco products alone to be Dh2 billion annually.