On Saturday the tills of baqalas and tobacco kiosks rang constant as smokers bought packs by the hundreds.
On Sunday they were silent.
The doubling of prices under the new excise tax that came into affect on October 1 looked to have the intended affect, despite the predictable rush to stock up the day before.
In Abu Dhabi yesterday, many shoppers appeared to be put off by the new prices, with stores reporting a fraction of their usual trade in tobacco. Energy drinks were also hit with the 100 per cent, and fizzy drinks by a 50 per cent hike.
Those on good salaries are likely to see the hike as negligible, but for many the Dh3.50 to Dh7 hike on low end packets, and the jump from Dh11 to Dh22 for some premium brands, is likely to be too much.
Select baqalas and hypermarkets have applied the prices but those with old stock have kept prices low.
Whatever the price, shoppers will find slim pickings. Shelves at half a dozen baqalas and supermarkets visited by The National were nearly empty. Retailers said the shortage was from a lack of supply by distributors.
Customers caught out by the new tax walked away empty handed.
At the smokers centre in Carrefour at Marina Mall, clerk Rhodora Breganza had seen five surprised customers walk away by early afternoon after seeing the new prices. “It’s been effective so far,” she said.
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Read more:
Smokers bulk buying cigarettes ahead of ‘sin tax’ coming into force
Cigarettes and energy drinks to double in price on October 1
Hundred per cent tax on cigarettes and energy drinks 'should be the first step towards a healthier nation', doctors say
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One customer, a Nepalese construction worker, pulled a five dirham note from his pocket as an afterthought after buying his lunch.
Ms Breganza shook her head. “New prices” she said. “It’s seven dirhams.”
Two dirhams short, he left empty handed.
Abdul Razak, a clerk at the Mohammed Tahir Baqala off Hamdan Street, had been given a six-page list of amended prices to be implemented immediately. On Saturday, the day before the tax was implemented, he had sold 60 packs. By mid-afternoon on Sunday, he had sold just three.
“People here smoke a lot,” he said.
"Look, in the 15 years I’ve worked here how many cigarettes have I sold? A lot. But from today you’ll see a change. People won’t want them anymore.”
At the neighbouring Ridwana Baqala, new price tags had been stuck to the shelves but prices were unchanged. It made little difference. Shelves were almost empty because their supplier had not come for a week.
“They’ve only given us limited stock for the last month,” said the clerk Mohammed Kadbu.
Larger retails reported similar issues.
“We have not raised prices yet because what we have is the old stock,” said Sayyid Minhas, the purchasing manager at Everfresh Hypermarket.
“Once we have a circular we will increase the price but not beforehand. Then again, we don’t have much stock because the main cigarette supplier has not given us anything.”
He expected a decrease in sales.
“It’s the first time we have something like this in the UAE so we have no idea what it will be like,” he said.
Shisha prices are expected to increase significantly at low end cafes in Khalidiya. Upmarket cafes may absorb the extra cost.
“You have to care about the customer,” said Ahmed Taha, the owner of Cafe De La Paix, at Marina Mall. “In shisha, at the end of the day, you’re making money. You don’t lose. If you make 50 per cent profit then take 25 or 10 per cent. Don’t be greedy.”
Taxi driver Noor Hossain said he would not buy another packet after the prices increased.
“No I will not, because my salary is how much?” said Mr Hossain. “Every day, I have 100 dirham and with that money I need to buy breakfast, lunch and dinner. All this costs Dh50 or Dh60. So now I will stop cigarettes. I promise you, today or tomorrow, I will stop. I will not buy another pack. Maybe at first it will be a little problem for me and I will need tea for energy but I’m thinking this is good. It’s better if everybody stops.”
Not everyone was optimistic. “It won’t work,” said Golam Murtaza Goli, an Iranian clerk who has worked at his brother’s baqala for 39 years. “They say they’ll stop but they won’t be able to quit.”
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Killing of Qassem Suleimani
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
The biog
Name: Mohammed Imtiaz
From: Gujranwala, Pakistan
Arrived in the UAE: 1976
Favourite clothes to make: Suit
Cost of a hand-made suit: From Dh550
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
UAE'S%20YOUNG%20GUNS
%3Cp%3E1%20Esha%20Oza%2C%20age%2026%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E2%20Theertha%20Satish%2C%20age%2020%2C%2066%20matches%0D%3Cbr%3E%0D%3Cbr%3E3%20Khushi%20Sharma%2C%20age%2021%2C%2065%20matches%0D%3Cbr%3E%0D%3Cbr%3E4%20Kavisha%20Kumari%2C%20age%2021%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E5%20Heena%20Hotchandani%2C%20age%2023%2C%2016%20matches%0D%3Cbr%3E%0D%3Cbr%3E6%20Rinitha%20Rajith%2C%20age%2018%2C%2034%20matches%0D%3Cbr%3E%0D%3Cbr%3E7%20Samaira%20Dharnidharka%2C%20age%2017%2C%2053%20matches%0D%3Cbr%3E%0D%3Cbr%3E8%20Vaishnave%20Mahesh%2C%20age%2017%2C%2068%20matches%0D%3Cbr%3E%0D%3Cbr%3E9%20Lavanya%20Keny%2C%20age%2017%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E10%20Siya%20Gokhale%2C%20age%2018%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E11%20Indhuja%20Nandakumar%2C%20age%2018%2C%2046%20matches%3C%2Fp%3E%0A
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
