The Federal Tax Authority (FTA) declared that the implementation of the Excise Tax has been a great success.
Excise Tax was implemented on the 1st of October 2017. Excise Tax was applied to Excisable Goods such as Carbonated Drinks at the rate of 50%, Tobacco Products, and Energy Drinks at the rate of 100%. On the 1st of December 2019, the scope of excise goods was expanded to Sweetened Drinks at the rate of 50% and Electronic Smoking Devices and Tools along with Liquids used in electronic smoking devices and tools at the rate of 100%.
FTA revealed that the total number of Excise Registrants grew continuously from 309 to 1,469 registrants by the end of September 2022. The cumulative growth was 375.41% between the end of 2017 and the end of September 2022.
FTA confirmed that the total number of products registered as Excise Goods increased from 3,078 products by the end of 2017 to 30,834 products in 2022. According to the data, there would be a startling cumulative growth rate of 901.75% from December 31, 2017, and September 30, 2022.
The FTA committee for approving Excise Prices of Goods that is subject to Tax continues to meet the law when approving the prices of goods. Recognizing and classifying products, as well as responding to requests from retailers and shops to adjust product prices or classifications in accordance with specific requirements.
H.E. Al Bustani, the FTA Director General stated that;
“The decision to expand the scope of Excise Goods meant that the excise tax scope would include sweetened drinks, electronic smoking devices and tools and the liquids used within, in addition to tobacco and tobacco products, energy drinks, and carbonated beverages. The decision followed directives from the wise leadership to accelerate the pace of progress towards a safe and healthy society, by reducing the consumption of harmful goods, preventing the damage they inflict onto the community, and combating diseases resulting from consumption patterns harmful to public health, in addition to developing the resources needed to support the expansion of government services to members of the community.”