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Tax revision likely on tobacco products

The UAE has already proposed an imposition of ‘health tax’ to curb tobacco use which has increased dramatically over the past five years. The sub-regional inter-country meeting was held earlier this month ahead of World No Tobacco Day being marked today in Cairo to train representatives from GCC countries on the module developed on increasing tobacco taxes.

It discussed a way forward for adoption of a new taxation system in GCC countries, including the UAE to support tobacco control strategies.

The meeting also discussed introduction of the internal excise system as a possible alternative to customs duties on imports that will be repealed in the near future as a result of international agreements, bilateral and multilateral, including “free-trade agreements.”

It was not clear how much taxation would be in place in the UAE though a senior official from the Ministry of Health said that a law regarding this was pending with the Cabinet. Dr Wedad Al Maidoor, Head of the Tobacco Control Committee in the Ministry of Health, said the meeting had recommended that the World Health Organisation would collaborate with the GCC to review the current system of taxes.

The recommendations also suggested that the GCC should consider the application level and structure of an internal tax equivalent (such as sales taxes or local production) on all forms of tobacco products.

“The GCC has also been asked to study improvement of data recording for tobacco and related products (raw tobacco and factory) that are imported and exported from the state,” said Dr Wedad.

“Issuing laws and adopting appropriate measures to ban tobacco advertising, increase taxes on tobacco products, place pictorial health warnings on tobacco packs and ban smoking in public places are the only ways to counter the tobacco epidemic,” said WHO Regional Director for the Eastern Mediterranean, Dr Ala Alwan.

asmaalizain@khaleejtimes.com

• UAE