Current Affairs

UAE Begins to Collect 'Sin' Taxes

The United Arab Emirates has begun collecting new "sin" taxes on tobacco products, energy drinks and soft drinks.

UAE Begins to Collect 'Sin' Taxes

  • Tobacco and energy drinks will be taxed at 100 percent and soft drinks at 50 percent. 
  • All six members of the Gulf Cooperation Council have agreed to begin collecting so-called VAT taxes, though others may begin later than January. 
  • The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.


What is Sin Tax?

  • A sin tax is an excise tax specifically levied on certain goods deemed harmful to society, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, sugar, gambling and pornography.
  • Sin tax is used for taxes on activities that are considered socially undesirable. In many cases, sumptuary taxes are implemented to mitigate use of alcohol and tobacco, gambling, and vehicles emitting excessive pollutants. 
UAE Begins to Collect 'Sin' Taxes UAE Begins to Collect 'Sin' Taxes Reviewed by insiya yadav on October 03, 2017 Rating: 5

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