The introduction of excise taxes slated to be introduced October 1 is on track and the Federal Tax Authority plans to publish a price list of items that will have to be paid monthly by companies, the director general of the authority said on Wednesday.
The UAE plans to introduce excise tariffs at a rate of 100 per cent on tobacco and energy drinks and 50 per cent on sugary drinks as part its efforts to combat unhealthy habits and shore up government revenue hit by lower oil prices.
Businesses that deal with excisable items, which are estimated at 250 companies, should register before October 1, Mr Khalid Al Bustani said in Dubai.
The Federal Tax Authority plans to publish a list of taxable items based on the retail market price, he said.
The tax will be applied to the higher price of two options: either to the price published by the FTA, which be available on the authority’s website, or the retail selling price, Mr Al Bustani said.
“We will have a periodical review of the price list (published on the website) because we need to see the market trends regarding these excisable goods,” said Mr Al Bustani.
The tax will be paid monthly with payment taking place within 15 days after the end of each month. The first collection will take place on November 15.
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The UAE is the second country in the Arabian Gulf to introduce excise tax after Saudi Arabia, which began collecting the levy in June. Other countries are expected to follow suit and have until the end of 2018 to introduce the tax, according to a pan-Gulf agreement signed by all six countries of the Gulf Cooperation Council.
“Implementing excise tax in accordance with international best practices is the culmination of an extensive process,” said Mr Al Bustani. “The excise tax has been adopted to reduce the consumption of goods that damage people’s health.”
Individuals or businesses subject to the tax include producers of excisable items, importers, stockpilers like hotels and restaurants and warehouse keepers.
The introduction of excise taxes and value-added tax on January 1, 2018 are expected to boost the inflation rate by a one-off 1.4 per cent, Mr Al Bustani said in August.
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
The National selections
6.30pm: Chaddad
7.05pm: Down On Da Bayou
7.40pm: Mass Media
8.15pm: Rafal
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9.25pm: Chiefdom
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
