President issues decree on Excise Tax
President His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued a Federal Decree-Law on Excise Tax, which will be imposed on selected products, as determined by the Council of Ministers and recommended by Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, and Chairman of the Federal Tax Authority, FTA.
As per Federal Decree-Law No. 07 of 2017, Excise Tax Rates that shall be imposed on the “Excise Goods”, which, along with the method of calculating the Excise Price, are subject to a decision by the Council of Ministers, upon the recommendation of the Minister of Finance, provided that the tax rates do not exceed 200% of the Excise Price.
The new Excise Law or Federal Decree-Law No. 07 of 2017 sets the framework for the imposition and administration of excise duties in the UAE.
The new legislation requires excise tax to be imposed on certain activities around specific excise goods, activities such as the production or import of excise goods in to the UAE, as well as the stockpiling of these in the UAE. The due tax is the responsibility of the person who conducts any of these activities.