100 Percent Tax Coming To The UAE This Year
If you love soft drinks or are a smoker, we've got some bad news for you!
The Federal Tax Authority (FTA) has announced a selective tax of 100 percent on tobacco and energy drinks, and a 50 percent tax on carbonated beverages that will be applied in the fourth quarter of this year.
The announcement was made by the FTA during its first meeting chaired by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, reports Gulf News.
The UAE is also moving forward with the implementation of value added tax (VAT), the rate for which has been set at 5 percent. The tax will be implemented on January 1, 2018. Shaikh Hamdan elaborated on the reasoning behind VAT, citing that the tax is being introduced to achieve economic diversification in preparation for the post-oil era.
“The tax procedures law is in the final phase, and will soon be issued and published. The VAT law is being debated by the technical legislative committee in preparation for submitting it to the Cabinet for approval, while the selective tax draft law will be soon discussed by the committee,” Shaikh Hamdan said.