Excise tax on beverages industry in UAE- summary of concerns
Excise Tax was imposed on beverages containing sugar in October 2017. The taxation structure was 100% for energy drinks and 50% for carbonated soft drinks (CSD). The intended purpose of the tax was to help consumers to reduce their consumption of high sugar content products, considering health concerns. The impact has been significant and negative. The taxation has also caused considerable damages in terms of incurrence of avoidable fines and penalties.