The Federal Tax Authority (FTA) asserted that the implementation of Excise Tax has been a great success in all aspects, whether in relation to the implementation mechanisms that have been continuously developed in accordance with international best practices, or in relation to encouraging cooperation from sectors of taxable businesses. Other indicators have also revealed generally positive results, demonstrating that the roll-out of Excise Tax has achieved its main objectives.

The review was part of a press statement the Authority issued to mark the five-year anniversary of the implementation of Excise Tax, which went into effect in the UAE as of 1 October 2017, and was applied to carbonated beverages at a rate of 50%, as well as tobacco products and energy drinks at 100%. As of 1 December 2019, the scope of Excise Goods was expanded to include sweetened drinks, which became subject to a rate of 50%, and electronic smoking devices and tools along with the liquids used within at a rate of 100%, as per Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates, and the Methods of Calculating the Excise Price.

source : https://tax.gov.ae/