UAE Moves Towards 50 Percent Soda Tax and 100 Percent Levy for Energy Drinks

07f757bb-fb9a-44c2-b0af-d19794f810e1articleimage.jpg

25 May 2017 --- The UAE is introducing new fiscal measures to tax carbonated drinks by 50% and a 100% tax hike on energy drinks. 

The levy will be applied to the retail price of the drinks and comes into force during the fourth quarter of 2017, according to the Ministry of Finance.
 
The UAE is imposing the taxes as part of a package of measures which will also see tax introduced on tobacco products. 
 
The tax on high-sugar products is a different strategy for UAE which has historically avoided taxing the sale of products directly. 
 
It comes as more and more countries around the world introduce tax on sugary and fizzy drinks. 
 
And this is a more aggressive strategy for tackling high-sugar products in the same vein as Mexico’s $0.05 per liter tax on sugary soft drinks, approved in 2013.
 
Last October, the World Health Organization (WHO) also urged all countries to consider introducing such levies as an effective way of curbing the rising obesity rates, particularly for children. 
 
The UAE tax could bring in around US$200 million in a year, estimates suggest. 
 
Taxes will be payable on a monthly basis and businesses should not stockpile, say UAE government officials. 
 
Countries like Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman have high smoking levels as well as high rates of obesity and the associated health problems. The government is looking to stem the rising numbers, claiming the tax will incentivize consumers to switch to a healthier lifestyle. 

Related Articles

Regulatory News

US: New study puts forward case for hiking up alcohol taxes

13 Dec 2017 --- US state alcohol excise taxes are typically only a few cents per drink and have not kept pace with inflation, according to a new study. Soon to be published in the January issue of the Journal of Studies on Alcohol and Drugs, authors claim that hiking up taxes would be a chance for US states to increase revenues while simultaneously improving public health costs related to excessive alcohol consumption.

Regulatory News

New analysis suggests meat tax could be on the cards in 5 years time

12 Dec 2017 --- Questions are being raised as to the likelihood of a livestock levy in years to come as part of new analysis examining how meat could follow the same path as tobacco, carbon emissions and sugar and become subject to a so-called “sin tax,” with implications all around the globe.

Food Ingredients News

Palsgaard CCO: Emulsifiers can thrive on a sustainability platform

12 Dec 2017 --- Emulsifier and stabilizer manufacturer Palsgaard A/S is the enabler of a new industry initiative aimed at inspiring and sharing expert knowledge, know-how and ideas to help realize the full potential of sustainably sourced and produced emulsifiers. Emulsifiers contribute to a very small part of the ingredients list for a range of foods – from baked goods to ice cream, chocolate, dairy and margarine – but they play a huge role in ensuring product quality and shelf-life, enabling them to support a number of the UN’s Sustainable Development Goals (SDGs). 

Food Ingredients News

Sugar reduced solutions in abundance at FiE 2017

11 Dec 2017 --- Sugar reduction was the focus for many exhibitors at this year's Food ingredients Europe 2017 (FiE), even in indulgent applications, such as chocolate and desserts. With 2018 set to be a big year for sugar reduction and with sugar taxes coming into effect in Ireland and the UK, many ingredients suppliers are looking to innovate even further in the space of sugar reduction.

Food Ingredients News

McCormick 2018 Flavor Forecast highlights adventurous global fusions

11 Dec 2017 --- McCormick & Company, Inc., has released the McCormick Flavor Forecast 2018. This year’s Flavor Forecast highlights the casual, adventurous and interactive nature of how people are eating across the globe today.

More Articles