Objectives Regulate the application of excise tax on goods harmful to public health, such as tobacco products, energy drinks, and sweetened beverages, with the objective of reducing consumption and promoting a healthier lifestyle. 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% Carbonated drinks 50% Sweetened drinks 50%
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 taxable at a rate of 100% of the excise price, the tax equals half of its designated retail sales price. For excise goods taxable at a rate of 50% of the excise price, the tax equals one third of its designated retail sales price.