DUBAI: The United Arab Emirates (UAE) will start implementing the selective tax law from Oct 1, state news agency WAM reported on Tuesday.

“The selective tax will be imposed on all selective goods that are consumed within the country even if they are in a free zone or at airports,” Younis al-Khouri, the under-secretary of the Ministry of Finance, told WAM in an exclusive statement.

“Goods accompanied by travellers out of the country will not be taxed, unlike those accompanied with the arrivals of the state, which will be taxed,” he explained.

On Monday, UAE President Sheikh Khalifa Bin Zayed Al-Nahyan issued a decree to levy taxes on selective commodities issued by the Council of Ministers upon the proposal of the finance minister.

According to the decree, the Council of Ministers shall determine the tax rates imposed on selective goods and how to calculate the selective price, provided that the tax rate imposed on such goods does not exceed 200 per cent of the selective price.

“The selective tax on tobacco and its derivatives and energy drinks will be imposed at 100pc, and 50pc with soft drinks. There are no lists of other goods at the moment,” Khoury said.

Preliminary estimates show the expected revenues from the selective taxes will bring almost 7 billion dirhams ($1.9bn) annually for the federal budget, WAM reported.

Published in Dawn, August 23rd, 2017