Middle EastWorld

UAE approves ‘sin tax’

DUBAI: The United Arab Emirates has issued a new law that imposes taxes on tobacco products, energy drinks and soft drinks to boost revenue and help offset the impact of lower oil prices. President of the UAE Sheikh Khalifa bin Zayed Al-Nahayan approved the tax decree yesterday.

Abu Dhabi’s The National news website reported that tobacco and energy drinks will be taxed at 100 percent and soft drinks at 50 percent. The move follows Saudi Arabia’s imposition of the tax in June. The gradual introduction of such taxes is part of a region-wide effort in the Gulf to diversify revenue streams away from oil.

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