Home GCC UAE UAE to open soft drinks, tobacco tax registration next week The tax will see prices for energy drinks and tobacco products increase by up to 100 per cent by Robert Anderson September 14, 2017 The UAE’s Federal Tax Authority has announced that it will open online registration for the upcoming excise tax on energy drinks, soft drinks and tobacco products from later this month. The tax rates of 50 per cent for soft drinks and 100 per cent for energy drinks and tobacco products will be implemented from October 1. Read: UAE to implement tobacco, soft drinks tax in October The responsibility for the tax falls upon the the person or company that produces or exports excise goods into the UAE, or stockpiles them in the country. Online registration for the tax, which is expected to see prices increase by the same percentages, starts on Sunday, September 17. “The 24/7 registration will be via FTA’s website, which provides businesses and consumers with a wealth of information on the upcoming introduction of excise tax, due on 1st October,” according to state news agency WAM. The excise tax is part of an initiative agreed by the Gulf Cooperation Council states last December to increase taxation on goods deemed harmful to human health. Saudi Arabia was the first to implement it in June and the other Gulf states are expected to follow in the coming months although most have yet to set a date for implementation. Read: Saudi importers, wholesalers accused of hoarding as new tobacco tax comes into effect Preliminary estimates suggest the tax will add Dhs7bn ($1.9bn) a year to the UAE state budget. Excise tax can also be applied to luxury goods but there has been no confirmation as to what items will be affected. The maximum tax rate for any item is 200 per cent. The www.tax.gov.ae includes information about the excise tax and others to be introduced in the country including the upcoming value added tax, set to be implemented on January 1. 0 Comments