Excise Tax
Excise tax is a type of indirect tax levied on things that are often damaging to people or the environment. The following items must be categorized as excise commodities:
- Tobacco-based items
- Carbonated drinks excluding unflavoured aerated water
- Electronic smoking devices and equipment
- Drinks that have been sweetened.
- An energy drink is any beverage that is promoted or sold as such and includes stimulator ingredients that provide mental and physical stimulation.
The following items are free from excise tax in the UAE:
- Standard 654 of the GCC Standardization Organization recognizes beverages for particular dietary requirements.
- Standard 1366 of the GCC Standardization Organization recognize beverages consumed for medicinal purposes.
- Beverages that are ready to drink (with at least 75 percent milk or milk substitutes)
- Baby formula or baby food
In the UAE, the excise tax percentages for qualifying items are:
- Tobacco items receive 100%
- 100% on e-cigarettes and e-cigarette accessories
- For carbonated beverages, 50% is the tax
- 50% off items containing added sugar or other sweeteners
- 100% for energy drinks