Comprehensive Information on Excise Tax in UAE
Almost all countries of the world levy excise taxes on various products, and the UAE is no different. It is well known
that the UAE government is particular about maintaining a health standard in the country. So, a healthy lifestyle has
been among the top priorities of the government.
In the country, the excise tax is now levied on energy drinks, tobacco,
tobacco-related products, and carbonated drinks. Along with this from 1st December 2019, the govt. implemented excise
tax in UAE on all kinds of e-cigarettes, sweetened beverages, and e-liquids used in e-cigarettes.
Reasons for levying excise taxes on various products in the UAE
- With such initiatives, the government is trying to control different kinds of ailments, which arise due to the
consumption of these harmful products. Also, public health is enhanced with such steps. Usage of such products also
causes harm to the environment, especially the smoking consumables. It will be easier to prevent certain chronic
diseases directly linked to tobacco and sugar consumption through such moves.
- Along with health and ecological concerns, the UAE government is also looking at the prospect of revenue generation
through the widening of Excise taxes. With the introduction of excise tax on new products, there will be considerable
changes in businesses that trade, manufacture, and even import them. Companies offering excise VAT services in Dubai
will be able to explain the matter in detail.
