Tobacco and energy drinks to get hit with a 100% tax later this year
Get ready for a price hike…
It looks like the cost of energy drinks and tobacco is set to climb in the latter half of the year.
The UAE’s Federal Tax Authority (FTA) has announced that a 100 per cent tax on the goods will be put in place in the fourth quarter of 2017, reported Gulf News.
The announcement was made during the FTA’s first official meeting, where it was also confirmed that a 50 per cent tax would be imposed against carbonated beverages, set to roll out at the same time.
This is all gearing up towards 1 January 2018, when a blanket 5 per cent VAT will roll out across the UAE in order to help stave the continuing drop in oil prices across the region.
As we have previously reported, around 100 items will be exempt from the tax including essentials such as food, education and healthcare – but it seems that cigarettes and sugary drinks didn’t make the cut.
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