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FTA clarifies excise tax price mechanism

Dubai - The UAE's Federal Tax Authority (FTA) on Tuesday said that excise goods price list which can be downloaded from its website is for reference only and not for setting retail prices.
It further clarified that the highest price of the taxable item will be taken into consideration based on these two criterion: Local market price specified in the excise goods price list or the designated retail sale price calculated by the retailer as per the procedure specified in the Taxable Persons Guide for Excise Tax.
The excise goods price list and taxable persons guide can be downloaded from FTA's website.
The Authority said that some brands of excise goods that are not yet on the list will be still subject to excise tax.
The UAE imposed 50 per cent tax on carbonated drinks and 100 per cent on energy drinks and tobacco products from October 1 in order to curtail the usage of these products to maintain a healthy society.
The Authority requested producers or importers of goods likely to be subject to excise tax, including energy drinks, carbonated drinks and tobacco products, to inform the FTA through its website of brands that should be added.
"Fixing the prices of products for retail is not within the jurisdiction of the FTA, it's the duty of other departments to monitor the prices according to the mechanism set out in the Federal laws," said Khalid Al Bustani, director-general of the Federal Tax Authority.
-waheedabbas@khaleejtimes