As per the announcement of UAE Ministry of Finance on Thursday, the scope of excise tax is expanding from December 1, 2019. This also includes the Cabinet Decision No. 52 of 2019 on excise tax rates, calculation methods of excise prices, excise goods, formula of calculating excise prices, amendment of Cabinet Resolution No. 38 of 2017 on excise goods and Cabinet Decision No. 55 of 2019 on excise price of tobacco products.

According to the Assistant Under-Secretary of Resource and Budget Sector, the main aim of imposing these taxes is to minimize the harmful consumer practices. Previously, these taxes were imposed on energy drinks, tobacco products and soft drinks and now the government has also added e-cigarettes and liquids and beverages with added sugar in the list.

The government of UAE is taking all initiatives to eliminate the harmful consumer practices; therefore, Ministry of Finance is providing its full cooperation with all the concerned authorities to research on the negative impacts of harmful consumption patterns. The ministry is also planning to conduct periodic studies on excise tax so that their optimal application can be ensured. This will be done to assure the well-being of all the society members and achieve the sustainable development goals for healthy living.