Objectives To regulate the imposition of Excise Tax on goods that are harmful to public health (such as tobacco and sweetened drinks), with the aim of reducing their consumption and promoting public health. Standardise tax procedures in accordance with the GCC Unified Excise Tax Agreement, contributing to the growth of government revenues. Ensure compliance and transparency through clear definitions, specific exemptions for essential food and medical products, and well-defined calculation mechanisms. Support national health and environmental goals by applying higher tax rates to harmful products, while enabling effective implementation through comprehensive explanatory guides.
Targeted excise goods & rates Excise goods Tax rate Tobacco and tobacco products (except products intended exclusively to assist in smoking cessation) 100% Liquids used in electronic smoking devices and accessories 100% Electronic smoking devices and accessories 100% Energy drinks 100%
Calculation of the excise price (Articles 13–14) The excise price shall be the higher of the following two prices: The price published by the Authority for the excise goods; or The designated retail sales price specified and announced or labelled on the goods by the importer or producer (after deducting the tax included therein). This is the price realised when the excise goods are sold for retail purposes directly for consumption. How to deduct the value of tax included within the designated retail sales price: For Excise goods subject to a 100% tax rate, the Excise Tax amount equals half of the retail sale price of the respective product.