The UAE Ministry of Finance releases new Ministerial Decision on excise tax

The Decision updates the harmonized system codes for electronic smoking devices and tools and introduces new excise tax calculation rules for concentrates, powders, gels and extracts for the production of sweet carbonated and energy drinks.

The Decision states that the excise price of concentrates, powders, gel, or extracts that can be transformed into carbonated or energy drinks, shall be the higher of the following:

• the price published by the FTA for the relevant excise good in a standard price list that it issues;
• the designated selling price for this good to the retailer that is identified and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the tax included therein.

The Decision is effective from the 3 January 2025.

The Decision may be found here.