Starting October, the UAE will set in motion its newest tax law: the excise tax. After initially revealing that a few items will become more expensive across the country, the Federal Tax Authority confirmed that the price of 1,610 more commodities will also be affected starting 2018.
The objective of the UAE excise tax, according to the director-general of the FTA, Khaled Al Bustani, is to reduce the consumption of goods that deteriorate people's health. It also aims to generate government funds for public services in the wake of the oil price decrease.
Up until now, here are the 4 items that have already witnessed a price increase. They are:
1. Tobacco
The government imposed a 100% tax on tobacco, meaning that the price of an average pack of cigarettes will increase from 8 dirhams to 16.
In the UAE, 26 men and 1 woman die every week because of tobacco. By raising the price of cigarettes, these numbers may fall.
2. Soft Drinks
A can of Coke or Pepsi, which previously sold at 1.5 will now cost 2.25 dirhams.
In 2015, Al Arabiya reported that each UAE resident consumed around 103 liters of soft drinks per year. Soft drinks increase a person's risk of developing diabetes and hypertension.
3. Energy Drinks
Just like tobacco, energy drinks' prices will double. Previously sold for around 5 to 10 dirhams, these beverages will now have a retail price of 10 to 20 Dh.
In the UAE, 15% of the population that consumes energy drinks has more than 1 serving/day with the main buyers ranging between 19 and 29 years of age.
4. Fuel
For car owners, this is definitely the worst news since fuel prices are expected to reach an all-time high since September 2015.
The price per liter of Super 98 will witness a 5.47% increase (2.01 Dh to 2.12 Dh). As for the price per liter of Special 9, it will increase by 5.79%, rising from 1.9 Dh to 2.01 Dh.
The cost of diesel will also increase from 2 Dh per liter to 2.1 Dh per liter.