The UAE Cabinet in an attempt to discourage use of sweetened
beverages and smoking habits of the public introduced new Excise
Law regime according to which UAE would apply 50% Excise Tax on
Sugar Sweetened Beverages (SSB) as well as 100% excise duty on
electronic smoking devices and equipment and its associated parts
such as the liquid used therein. The decision is contained in
Cabinet Decision Number 52 of 2019 on Excise Goods, Excise Tax
Rates and the Methods of Calculating the Excise Price. This
decision came into force on December 1, 2019.
The new excise tax shall apply on the above mentioned two
products in following manner
- The excise duty/tax of 50% shall be
levied on any product that contains sweeteners or added sugar
either in concentrate or beverages, powder or other substance that
is mixed with water to be made into a beverage.
