In 2017, the UAE introduced an excise tax on certain goods that are known to be harmful to health or the environment. These goods are called “excise goods.” They include carbonated drinks, energy drinks, and tobacco products.
Starting from December 1, 2019, the excise tax will also apply to electronic smoking devices and tools, liquids used in such devices, and sweetened drinks.
The rates of excise tax for these goods are as follows:
- 50% on carbonated drinks
- 100% on tobacco products
- 100% on energy drinks
- 100% on electronic smoking devices and liquids used in such devices
- 50% on any product with added sugar or other sweeteners.