Almost all companies registered to pay the UAE’s new excise duty on cigarettes and fizzy drinks have complied with the rules a year after it was introduced, with positive implications for public health, the Federal Tax Authority said on Saturday.
The level of compliance with the new law, measured by the number of tax returns submitted to the government, reached 97.7 per cent of all 715 registered businesses, the FTA said in a statement.
“These positive outcomes clearly indicate we have begun to achieve the main objectives of excise tax – most notable of which is building a safe and healthy society by reducing the consumption of goods that harm the health of community members and affect the quality of the environment,” said the FTA’s director general Khalid Al Bustani. “The system has also helped increase financial resources to support expansion of government services to the public.”
Mr Al Bustani urged tobacco companies to comply with the excise tax regulations to avoid penalties or a temporary ban on the sale of their products within the UAE.
Like other GCC countries, the UAE introduced taxes in the past year as a way of increasing state revenues following a three-year oil price slump. In January, it introduced a 5 per cent VAT on certain goods and services, along with Saudi Arabia, while Bahrain and other GCC countries plan to introduce VAT from 2019.
The introduction of VAT in the UAE is expected to raise up to 1.7 per cent of GDP, or up to Dh24 billion per year, Moody’s said in a report in September.
The UAE’s excise tax came into effect on October 1, 2017, when a 50 per cent levy was imposed on soft drinks and a 100 per cent levy on tobacco products and energy drinks. As well as boosting revenues, the UAE is also working to improve public health as instances of diabetes, cancer and heart disease are high in the country, according to the World Health Organisation.
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Read more:
UAE VAT boosts revenue base and could raise 1.7% of GDP, says Moody’s
UAE publishes excise tax law for tobacco and energy and fizzy drinks
FTA: More than 275,000 businesses registered for VAT
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Mr Al Bustani cited a report by WHO’s Regional Office for the Eastern Mediterranean, which he said praised the UAE’s anti-smoking efforts through its imposition of the tax.
“The statistics indicate that the value of the country’s foreign trade of tobacco and its products decreased significantly over the course of this year – a testament to [the UAE’s] policies to reduce consumption of goods that adversely affect human health and the environment,” the director general said.
The high level of compliance was due to the ease of the tax return procedures and flexible payment mechanisms, he said. The FTA has launched more than 60 guides covering legislative and practical aspects of UAE tax regulations, to illustrate what products and services are taxed and how taxpayers can submit returns.
The forthcoming tax period will witness more positive results as several new regulatory mechanisms and systems are due to be implemented, Mr Al Bustani added.
The most significant of these mechanisms is the Digital Tax Stamp Scheme for Tobacco Products, to be enforced at the start of 2019, he said. This is intended to establish a framework for authorities to help them streamline tax collection and combat tax evasion.
The UAE will apply a digital tracking system for the labelling of tobacco products with their price and safety warnings under the new scheme. The new system will work by means of a stamp or digital seal that will be installed on tobacco product packaging. This stamp will then be registered in the FTA’s database and read by special devices to ensure the tax on the products is paid.
match info
Athletic Bilbao 1 (Muniain 37')
Atletico Madrid 1 (Costa 39')
Man of the match Iker Muniain (Athletic Bilbao)
Company profile
Date started: January, 2014
Founders: Mike Dawson, Varuna Singh, and Benita Rowe
Based: Dubai
Sector: Education technology
Size: Five employees
Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.
Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)
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)
A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications
Titan Sports Academy:
Programmes: Judo, wrestling, kick-boxing, muay thai, taekwondo and various summer camps
Location: Inside Abu Dhabi City Golf Club, Al Mushrif, Abu Dhabi, UAE
Telephone: 971 50 220 0326
FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT)
Tuesday
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