DUBAI: Some items sold at airports, and goods due to be exported or re-exported, will be exempt from the new excise tax set to be imposed in the UAE from October, a top official told Zawya.
The excise tax will be imposed at the rate of 100 percent on tobacco and energy drinks and at 50 percent on fizzy drinks (excluding carbonated water), the director-general of the country’s Federal Tax Authority, Khalid Al-Bustani, announced in a press conference last week, which was followed by the release of the tax law earlier this week.
Yet confusion remained over whether goods set for export would be subjected to the excise duty, or those moving between free zones. In an e-mail interview with Zawya, Al-Bustani said the tax “will be imposed on all excise products that get consumed inside the state, even if they were in the free zone”.
He said the tax will also be imposed on excise products that get sold at airports for immediate consumption, but those sold at duty free establishments for consumption abroad would not be taxed.
“The excise tax will not be imposed on the products that get exported or those sold at airports for travelers to take outside the country,” he said.
Al-Bustani also said the tax will not be imposed on excise products that will be re-exported.
Passengers coming to the UAE will also be exempted from paying tax on any tobacco, energy and fizzy drinks they bring into the country, provided that it is for personal use and that the total value of the items is lower than the value subject to customs duty, he added.
Some items to be exempt from new UAE excise tax
Some items to be exempt from new UAE excise tax
India seals $3bn LNG agreement with UAE
- Leaders hold talks to strengthen trade, defense ties
NEW DELHI, DUBAI: India signed a $3 billion deal on Monday to buy liquefied natural gas from the UAE, making it the Gulf country’s top customer, as the leaders of both countries held talks to strengthen trade and defense ties.
The agreement was signed during a very brief two-hour visit to India by UAE President Sheikh Mohammed bin Zayed Al-Nahyan for talks with Indian Prime Minister Narendra Modi.
They pledged to double bilateral trade to $200 billion in six years and form a strategic defense partnership.
Abu Dhabi state firm ADNOC Gas will supply 0.5 million tonnes of LNG a year to India’s Hindustan Petroleum Corp. for 10 years, the companies said.
ADNOC Gas said the agreement brings the total value of its contracts with India to over $20 billion.
“India is now the UAE’s largest customer and a very important part of ADNOC Gas’ LNG strategy,” the company said.
The UAE is India’s third largest trading partner and Sheikh Mohammed was accompanied by a government delegation that included his defense and foreign ministers. The two sides signed a letter of intent to work toward forming a strategic defense partnership, India’s Foreign Secretary Vikram Misri told reporters.
Misri, however, said that the signing of the letter of intent with the UAE does not mean that India will get involved in regional conflicts.
“Our involvement on the defense and security front with a country from the region does not necessarily lead to the conclusion that we will get involved in particular ways in the conflicts of the region,” he said.
