Carousel

Sponsored Links
SEARCH THIS SITE
JBSOLIS is a site for all about health and insurances, SSS, OWWA, PAG-IBIG, Philhealth, bank loans and cash loans, foreclosed properties, small house designs, local and overseas job listings.

Advertisement

Thursday, August 24, 2017

UAE to Implement Sin Taxes in October

The cost of living in the UAE is about to increase in a few weeks. Starting October 1, the price of some selected items will increase by as much as 100 percent, or double. The UAE’s tax authority announced that a 50 per cent tax would be imposed on carbonated drinks, while energy drinks and tobacco products would attract a 100 percent tax. Carbonated water is exempt from the carbonated drinks tax. The prices of excise goods at points of sale - groceries and stores - must include the Excise Tax. Duty Free purchases at airports will also be exempt from the tax, as long as passengers are leaving the UAE. Passengers who purchase duty free items as they arrive in the UAE will be taxed. UAE's Tax announcement comes just two months since Saudi Arabia imposed SIN TAXES on similar items with similar price increases in June. President of the UAE Sheikh Khalifa bin Zayed Al Nahyan approved the Federal Decree-Law on Excise Tax last Monday, imposing excise taxes to products that are deemed unhealthy. The plan to tax products that are detrimental to health has been in place for some time now. The government hopes people will cut down on sugary products following this tax. The UAE government also hopes the new excise taxes will help boost revenue and help offset the impact of lower oil prices. The gradual introduction of such taxes is part of a region-wide effort in the Gulf to diversify revenue streams away from oil. The tax is expected to generate up to around Dh7 billion in annual revenues for the Federal Budget. They also believe, the move will reduce health costs for thousands of residents in the Emirates due to medical costs of obesity. Additional products may be taxed in the future at rates of up to 200 per cent, but as of now it is just energy drinks, fizzy drinks, and tobacco. Experts say the new taxes on tobacco products and carbonated drinks will have an impact on the industry. They predict that the impact on the sale of fizzy and energy drinks would be swift and severe. “Sales will plummet as a result of the tax, because people have a choice. If carbonated drinks are much more expensive, then people will just opt for water,” said one analyst. This is just the beginning. Like other GCC states, UAE is also set to introduce VAT for the first time in its history. A 5% tax will be implemented starting January 2018. Of course, some basic goods are VAT exempt, but UAE, especially Dubai and Abu Dhabi, is known as a haven for luxury goods. sources: Washington Post, GulfNews

"Advertisements"

The cost of living in the UAE is about to increase in a few weeks. Starting  October 1, the price of some selected items will increase by as much as 100 percent, or double.


The UAE’s tax authority announced that a 50 per cent tax would be imposed on carbonated drinks, while energy drinks and tobacco products would attract a 100 percent tax. Carbonated water is exempt from the carbonated drinks tax. The prices of excise goods at points of sale - groceries and stores - must include the Excise Tax.

Duty Free purchases at airports will also be exempt from the tax, as long as passengers are leaving the UAE. Passengers who purchase duty free items as they arrive in the UAE will be taxed.
The cost of living in the UAE is about to increase in a few weeks. Starting October 1, the price of some selected items will increase by as much as 100 percent, or double. The UAE’s tax authority announced that a 50 per cent tax would be imposed on carbonated drinks, while energy drinks and tobacco products would attract a 100 percent tax. Carbonated water is exempt from the carbonated drinks tax. The prices of excise goods at points of sale - groceries and stores - must include the Excise Tax. Duty Free purchases at airports will also be exempt from the tax, as long as passengers are leaving the UAE. Passengers who purchase duty free items as they arrive in the UAE will be taxed. UAE's Tax announcement comes just two months since Saudi Arabia imposed SIN TAXES on similar items with similar price increases in June. President of the UAE Sheikh Khalifa bin Zayed Al Nahyan approved the Federal Decree-Law on Excise Tax last Monday, imposing excise taxes to products that are deemed unhealthy. The plan to tax products that are detrimental to health has been in place for some time now. The government hopes people will cut down on sugary products following this tax. The UAE government also hopes the new excise taxes will help boost revenue and help offset the impact of lower oil prices. The gradual introduction of such taxes is part of a region-wide effort in the Gulf to diversify revenue streams away from oil. The tax is expected to generate up to around Dh7 billion in annual revenues for the Federal Budget. They also believe, the move will reduce health costs for thousands of residents in the Emirates due to medical costs of obesity. Additional products may be taxed in the future at rates of up to 200 per cent, but as of now it is just energy drinks, fizzy drinks, and tobacco. Experts say the new taxes on tobacco products and carbonated drinks will have an impact on the industry. They predict that the impact on the sale of fizzy and energy drinks would be swift and severe. “Sales will plummet as a result of the tax, because people have a choice. If carbonated drinks are much more expensive, then people will just opt for water,” said one analyst. This is just the beginning. Like other GCC states, UAE is also set to introduce VAT for the first time in its history. A 5% tax will be implemented starting January 2018. Of course, some basic goods are VAT exempt, but UAE, especially Dubai and Abu Dhabi, is known as a haven for luxury goods. sources: Washington Post, GulfNews
graphics courtesy of Gulf News
"Advertisements"

UAE's Tax announcement comes just two months since Saudi Arabia imposed SIN TAXES on similar items with similar price increases in June.

SAUDI SIN TAX: Price of Soft Drinks Increase, Cigarette Doubles


President of the UAE Sheikh Khalifa bin Zayed Al Nahyan approved the Federal Decree-Law on Excise Tax last Monday, imposing excise taxes to products that are deemed unhealthy. The plan to tax products that are detrimental to health has been in place for some time now. The government hopes people will cut down on sugary products following this tax.

 The UAE government also hopes the new excise taxes will help boost revenue and help offset the impact of lower oil prices. The gradual introduction of such taxes is part of a region-wide effort in the Gulf to diversify revenue streams away from oil.

"Sponsored Links"

The tax is expected to generate up to around Dh7 billion in annual revenues for the Federal Budget. They also believe, the move will reduce health costs for thousands of residents in the Emirates due to medical costs of obesity.
The cost of living in the UAE is about to increase in a few weeks. Starting October 1, the price of some selected items will increase by as much as 100 percent, or double. The UAE’s tax authority announced that a 50 per cent tax would be imposed on carbonated drinks, while energy drinks and tobacco products would attract a 100 percent tax. Carbonated water is exempt from the carbonated drinks tax. The prices of excise goods at points of sale - groceries and stores - must include the Excise Tax. Duty Free purchases at airports will also be exempt from the tax, as long as passengers are leaving the UAE. Passengers who purchase duty free items as they arrive in the UAE will be taxed. UAE's Tax announcement comes just two months since Saudi Arabia imposed SIN TAXES on similar items with similar price increases in June. President of the UAE Sheikh Khalifa bin Zayed Al Nahyan approved the Federal Decree-Law on Excise Tax last Monday, imposing excise taxes to products that are deemed unhealthy. The plan to tax products that are detrimental to health has been in place for some time now. The government hopes people will cut down on sugary products following this tax. The UAE government also hopes the new excise taxes will help boost revenue and help offset the impact of lower oil prices. The gradual introduction of such taxes is part of a region-wide effort in the Gulf to diversify revenue streams away from oil. The tax is expected to generate up to around Dh7 billion in annual revenues for the Federal Budget. They also believe, the move will reduce health costs for thousands of residents in the Emirates due to medical costs of obesity. Additional products may be taxed in the future at rates of up to 200 per cent, but as of now it is just energy drinks, fizzy drinks, and tobacco. Experts say the new taxes on tobacco products and carbonated drinks will have an impact on the industry. They predict that the impact on the sale of fizzy and energy drinks would be swift and severe. “Sales will plummet as a result of the tax, because people have a choice. If carbonated drinks are much more expensive, then people will just opt for water,” said one analyst. This is just the beginning. Like other GCC states, UAE is also set to introduce VAT for the first time in its history. A 5% tax will be implemented starting January 2018. Of course, some basic goods are VAT exempt, but UAE, especially Dubai and Abu Dhabi, is known as a haven for luxury goods. sources: Washington Post, GulfNews
Obesity rates in the UAE is higher than world average

Additional products may be taxed in the future at rates of up to 200 per cent, but as of now it is just energy drinks, fizzy drinks, and tobacco.


Experts say the new taxes on tobacco products and carbonated drinks will have an impact on the industry. They predict that the impact on the sale of fizzy and energy drinks would be swift and severe. “Sales will plummet as a result of the tax, because people have a choice. If carbonated drinks are much more expensive, then people will just opt for water,” said one analyst.

 This is just the beginning. Like other GCC states, UAE is also set to introduce VAT for the first time in its history. A 5% tax will be implemented starting January 2018. Of course, some basic goods are VAT exempt, but UAE, especially Dubai and Abu Dhabi, is known as a haven for luxury goods.

 sources: Washington Post, GulfNews



©2017 THOUGHTSKOTO

SEARCH JBSOLIS, TYPE KEYWORDS and TITLE OF ARTICLE at the box below
Tags , , , , , , , , , , , , , ,