100% price spike for some items from October 1

Khaleej Times -- Cigarettes, energy and soft drinks are going to be expensive as the UAE is all set to implement Excise Tax on October 1, 2017.

The Federal Tax Authority on Wednesday announced that the authority is all set to implement Excise Tax in the country from next week. 

On October 1, the excise tax will go into effect at a rate of 100 per cent on tobacco and energy drinks that include stimulants or substances that induce mental or physical stimulation, such as caffeine, taurine, ginseng and gaurana. The tax also will go into effect on soft drinks, at a rate of 50 per cent.

As per the Federal Decree-Law No (7) of 2017, Excise Tax will be charged on production of excise goods in the UAE, import of excise goods in the UAE, release of excise goods from a designated zone and stockpiling of excise goods in the course of conducting business. Excise tax available in a registered designated zone will not be charged excise tax until released from the zone.

The new law mandates that businesses must be registered via the Federal Tax Authority's interactive website. From October 1, any business not registered for tax is prohibited from conducting above activities in the country.

The authority also advised the businesses to keep records audited by an auditor certified in the UAE that excise goods stock available on October 1, 2017.