What is Excise Tax Dubai ?

Excise tax Dubai UAE is an Indirect tax that is levied on specific products. It was introduced in 2017 and is levied on specific goods that are harmful to human health and the environment. This was introduced to reduce consumption of these products and increase government revenue that in turn is spent on public services.

The UAE Ministry of Finance has announced that excise will be applied to tobacco (100% rate), electronic smoking devices (100%rate), energy drinks (100% rate), carbonated drinks (50% rate), and sweetened drinks. This has the potential to significantly reduce the consumption of such high sugar and harmful products.

How is a product categorized under excise tax Dubai?


There are mainly 3 categories of products that come under excise tax.

Carbonated drinks including any aerated beverage except for unflavored aerated water. Also considered in this category are any concentrations, powders, gels, or extracts planned to be prepared into an aerated beverage.

2. Energy drinks including any beverages which are marketed or sold as an energy drinks and contain stimulant substances that provide mental and physical stimulation. This includes, among others: caffeine, taurine, and ginseng.

Tobacco and tobacco products and devices.

From 1 December 2019: Electronic smoking devices and tools, liquids used in such devices, and sweetened drinks have also been added to the excise taxes.

Businesses Required to Register

Under the UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, registering for excise tax is the responsibility of any business engaged in:Read More

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