The Federal Tax Authority, FTA, has begun implementing procedures related to the latest Cabinet Decision on Excise Goods, Excise Tax Rates, and the Method of Calculating the Excise Price, which expanded the scope of excise goods.
The new decision goes into effect on 1st January 2020, adding these products to the list of Excise Goods, which included tobacco and tobacco products, energy drinks, and carbonated drinks – products that have been subject to Excise Tax since 1st October 2017.
This is a part of the government’s efforts to promote healthy lifestyles in the UAE community seeking to ensure that the country is among the best in the world across all sectors.
As part of the first phase, the FTA called on producers, importers, and stockpilers of sweetened drinks with added sugar to follow the Decision and begin registering for excise tax purposes, emphasizing that Excise Tax is an indirect tax that is imposed on certain products deemed harmful in an effort to curb their consumption.
The Authority revealed that it has updated the electronic registration system for excise goods to allow for adding the new products included in the amended Cabinet Decision.
An entirely new registration procedure was put in place as of 18th August 2019, and the FTA called on all concerned businesses – including producers, importers, and stockpilers of Excise Goods – to take the initiative and register said goods in the new system. It also called on all businesses concerned with sweetened drinks to register. The Authority will announce the next phase of the registration that will include electronic smoking devices and liquids used in the devices.
As per the Decision, the Federal Tax Authority specifies the necessary procedures to classify Excise Goods and may request Persons to provide documents or laboratory evidence to determine the content of a certain product and properly classify it.
The Authority has also launched a widespread campaign of awareness workshops and seminars targeting all stakeholders involved to introduce them to the new procedures. These steps are in line with directives from the UAE’s wise leadership to cement the country’s competitive position, expedite plans to establish a safe and healthy society, and curb consumption of products that harm people’s health and the environment.