New tax to be implemented in UAE from December

A new selective tax on E-cigarettes and sweetened drinks will come to effect from December 1. This was announced by the Federal Tax Authority (FTA) .

All producers, importers and stockkeeper of e-smoking devices and its liquids, and sweetened drinks should register in the authority’s system if they haven’t until now. Those find violating this will be fined and penalised. The new announcement is according to the two Cabinet decisions and the Ministry of Finance.

Now a new research study carried out by ‘YouGov’ revealed that around 55% of UAE residents support implementation of new sugar tax while just 20% oppose it.

66% of high income earners who earn Dh40,000-plus per month support the tax. While the support amongst those earning Dh5,000 or less per month is considerably lower at 48%. Support for the new sin tax amongst young adults between 18 and 24 years was lower at 47% compared to 56% amongst older age groups.

The new tax aims at reducing the consumption of specific goods typically harmful to either human health or the environment. Around two-thirds believe it will help to reduce the intake of unhealthy foods and beverages (67%), check sugar addiction (66%) and prevent chronic diseases linked to sugar (65%).

Data was collected online by YouGov Omnibus among 1,002 respondents in the UAE between October 23 and 30, 2019.