UAE begins collecting ‘sin’ taxes

2 Oct 17

The United Arab Emirates’ new excise tax came into effect yesterday, with tobacco and energy drinks taxed at 100% and soft drinks at 50%.

The UAE’s economy, along with oil-rich countries in the region, has struggled as a result of the low global energy prices and it is seeking to diversify its tax base.

It will also introduce a 5% VAT on certain goods and services in January.

Other GCC countries, including Bahrain, Kuwait, Oman and Qatar, are also expected to introduce the tax in 2018. 

  • Simone Rensch

    Freelancer journalist and former Public Finance international reporter

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