The UAE’s Federal Tax Authority (FTA) has called on all businesses registered for excise tax to comply with the minimum price it has set for tobacco products.
The authority said the price cannot be set under 40 fils for one cigarette while the minimum price for waterpipe tobacco, known in Arabic as ‘Mu’assel’, has been set at 10 fils per gram.
The FTA said in a statement issued on Tuesday that enforcing a minimum price will protect consumers and prevent price manipulation for the purpose of tax evasion.
The minimum standard price for a pack of 20 cigarettes has been set at AED8 and at AED25 for every 250 grams of waterpipe tobacco. This applies to all brands of cigarettes and locally traded tobacco products.
The decision, which goes into effect on December 1, is part of UAE government’s efforts to limit the consumption of products that harm individuals’ health.
It also places a 100 percent excise tax on tobacco and tobacco products, as well as electronic smoking devices and liquids, and energy drinks. Meanwhile, carbonated beverages and sweetened drinks are subject to a 50 percent excise tax.