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Excise Goods

Tax shall be applicable on the following Excise Goods:

Tobacco and tobacco products

Tobacco and tobacco products shall include all items listed within the GCC Common Customs Tariff that are imported, cultivated or produced in the State.

Carbonated drinks

Carbonated drinks shall mean all of the following:

  1. any aerated beverage except unflavoured aerated water;
  2. any concentrates, powder, gel, or extracts intended to be made into an aerated beverage.

Carbonated drinks shall not include any beverage containing alcohol, even if the product is otherwise considered an aerated beverage.

Where a product specified under Paragraph (b) has previously been subject to Tax in the State, the aerated beverage produced by combining that product with an aerating agent at the selling place by a non-Taxable Person shall not be considered an Excise Good for the purposes of the Decree-Law and no further Tax shall be due on it, moreover, the Tax paid on the product specified under Paragraph (b) cannot be considered as Deductible Tax.

Any product which meets the definition of a carbonated drink pursuant and also meets the definition of an energy drink shall be classified as an energy drink and Tax shall be due on that product at the rate applicable to energy drinks.

Energy drinks

Energy drinks shall mean all of the following:

  1. any beverages marketed or sold as an energy drink that may contain stimulant substances that provide mental and physical stimulation, which includes without limitation caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances;
  2. any concentrates, powder, gel or extracts intended to be made into an energy drink.

Energy drinks shall not include any beverage containing alcohol, even if the product is otherwise considered an aerated beverage.

Where a product specified under Paragraph (b) has previously been subject to Tax in the State, the energy drink produced from mixing this product with other products at the selling place by a non-Taxable Person shall not be considered as an Excise Good for the purposes of the Decree-Law and no further Tax shall be due, moreover the Tax paid on the product specified under Paragraph (b) cannot be considered as Deductible Tax.

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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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