Explaining Excise Tax
Excise Tax is a form of indirect tax levied on specific goods. These goods are typically those that are harmful to human health or the environment. The intent of the tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on beneficial public services.
In the UAE, Excise Tax will apply to the following goods:
- Tobacco products
- Carbonated drinks (note that this excludes sparkling water)
- Energy drinks
End consumers of these products will generally pay a higher retail price once Excise Tax is implemented.
All businesses that import, produce or store excisable goods must consider if they must be registered with the Federal Tax Authority and are accountable for filing and paying Excise Tax. Please refer to 'getting ready for excise tax' for further details.