Excise tax targets goods considered harmful to human health or the environment, introduced in October 2017.
| Category | Rate |
|---|---|
| Tobacco and tobacco products | 100% |
| Electronic smoking devices & liquids | 100% |
| Energy drinks | 100% |
| Carbonated drinks | 50% |
| Sweetened drinks | 50% |
Excise tax is applied to the higher of the FTA's "Designated Retail Sales Price" for that product, or the actual retail selling price. VAT (5%) is then applied on top of the excise-inclusive price — so excise goods effectively face two layers of tax.
Importers, producers, and stockpilers of excise goods must register with the FTA and account for the tax — it's built into the retail price consumers pay, similar to VAT.
Calculate excise tax on a specific product.
Use the Excise Tax Calculator →Product classifications and designated retail prices are set by the FTA and can change. Verify your specific product's classification and rate with the FTA.