After Saudi Arabia, the United Arab Emirates (UAE) has announced its intention to extend the levy of excise tax to electrically heated cigarettes, electronic smoking devices and tools, liquids used in electronic smoking devices and tools, and sweetened drinks.
The Federal Tax Authority (FTA) has recently published Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price published on 4 September 2019 (Cabinet Decision No. 52/2019) in this regard. The Cabinet Decision No. 52/2019 can be accessed here.
Excise tax on the new category of excise goods is likely to come into effect before 1 January 2020. The date of implementation will be announced through a separate Ministerial Decision.
Our tax alert addresses frequently asked questions on the extension of excise tax to the new category of excise goods, the next steps for businesses to prepare for introduction and how KPMG can help.
You can access our tax alert here.
If you need any assistance with excise tax in the UAE, please reach out to your contact at KPMG.
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