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VAT to be levied on excise goods – FTA official

VAT to be levied on excise goods – FTA official
general director of the Federal Tax Authority Khalid Al Bustani

By: Amr Adel

Dubai – Mubasher: Goods subject to the excise tax will also be subject to the valued added tax (VAT), according to the general director of the Federal Tax Authority (FTA) Khalid Al Bustani.

The excise tax will be imposed at 50% on carbonated drinks and 100% on all tobacco products as well as energy drinks, while the VAT will be imposed at 5%, according to the FTA.

When asked whether the draft law for the excise tax will include other taxes, the top official said that the law was passed to be enforced on an extended period of time.

According to Ministry of Finance, the excise tax will yield AED 7 billion ($1.92 billion) yearly.

Al Bustani stated that the UAE adheres to the common agreement of the GCC countries.

The excise tax law will be imposed on other commodities according to the emerging economic conditions.

VAT will also be imposed on brokerage firms at 5%, the FTA director general concluded.

The excise tax aims to reduce the consumption of some harmful goods, such as tobacco products and carbonated drinks.

 

Translated by: Muhammed Abdul-Wakeel