Since the sin tax was introduced nearly two years ago, the 85 per cent plummet in sales of tobacco products has been nothing short of astonishing. The massive decline in sales shows the power of such taxes. According to Wam, the 100 per cent excise tax on cigarettes slashed the value of Abu Dhabi's tobacco trade from Dh410 million to Dh62.4m last year. Although retailers have absorbed some of the cost, top cigarette brands now sell for around Dh21 a pack, up from Dh11 in 2017. The message is clear: when harmful products become prohibitively expensive, people do kick the habit. The law was designed to drive down cigarette consumption and clearly, it has worked.
According to the World Health Organisation, raising tobacco prices is one of the most effective ways to encourage smokers to quit. In the UAE, that is a valuable mission. Smoking killed more than 2,900 people in the country in 2016 and cost the nation about $569 million in lost productivity and healthcare costs, according to research by Tobacco Atlas. Hospitals across the UAE are forced to devote resources to treating smoking-related conditions, from chronic obstructive pulmonary disease to lung cancer. To keep second-hand smoke out of our children's lungs and cigarette butts off our streets, this action is long overdue in the UAE.
However, there is still plenty of work to be done. There are concerns that excise taxes on cigarettes push consumers towards cheaper brands and even illicit cigarettes. That is why the UAE’s sin tax has been accompanied by a crackdown on the import of illegal cigarettes. Meanwhile, we need to debunk myths about smoking dokha and shisha, which are at least as harmful as cigarettes, although many do not realise it. With astute policymaking, the UAE is taking necessary action on cigarette smoking. And as this week’s figures reveal, it is already paying dividends.
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Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
