«Confusion» on the first day of application of «selectivity» on sweetened drinks

Some of the outlets in Abu Dhabi markets were confused during the first day of the 50% selective tax on sweetened beverages, as the pre-tax rebate offers continued.

A tour of Emirates Today showed some outlets

Some shelves of sweetened beverages have appeared free of price, while outlets have continued to sell at old prices.

Two sales officials at two outlets in Abu Dhabi attributed the confusion during the first day of the tax to congestion and the ongoing sales until midnight closing hours, at a time when consumers confirmed that they are considering changing the pattern of consumption of sweetened juices to rationalize spending.

The Federal Tax Authority has previously announced that the range of goods subject to the selective tax will be expanded from December 1 to include 50% sweetened beverages, 100% electronic smoking devices and liquids, tobacco products, energy drinks and beverages. Invasive tax, which began to apply the selective tax as of the beginning of October 2017.

Not ready

In detail, consumer Reem Mohammed saw confusion at some outlets during the first day of applying the selective tax on sweetened beverages.

She pointed out that the outlet proved new prices on some items, while other items are still sold at the old prices, pointing to the presence of only one employee changed the price codes until midday yesterday, but the old price was calculated at the payment box, which indicates that the port is not ready Entirely.

She stressed that the imposition of the tax has made it consider changing the pattern of consumption of sweetened beverages, and turn to sugar-free drinks, to rationalize spending and to maintain health.

Confusion of ports

Consumers Ahmed Saleh agreed that there was confusion on the first day of the application of the tax on sweetened beverages, pointing to the absence of shelves full of sweetened beverages at the outlet of prices, waiting to be changed to new prices, at a time when the prices of some items were changed, and others are still sold at old prices . He said he is currently considering reducing the consumption of beverages to which sugar is added, and replacing large bottles with small ones, after the high prices.

Continuing offers

Consumer Farid Nasr said that he noted that the sweetened beverage companies continued to offer some of their products after taxation, which was very positive. He called on producing companies to reduce the effects of selective tax on consumers, especially during the first period of implementation, and support their sales.

Nasr agreed with his counterparts that some outlets are still not ready to apply the tax, and said that outlets did not put new prices on some products, and there is «blurring» in some outlets for drinks not added to sugar, despite the announcement that they are not Taxable.

Difficulty of change

Jamshed Dylan, an Abu Dhabi outlet official, said the outlets are expected to finish putting new prices on all sweetened beverages by the end of the first day of the tax.

He pointed out that it is difficult to work with the new prices since the first morning, because of the continuing sales amid a heavy congestion of consumers until midnight, and offers of discounts for the National Day of the State, which made it difficult to change prices the day before the tax comes into effect.

Ahmed Seddiqi, a sales executive at another outlet, said that the first day of taxation is generally confusing, given the lack of time to change prices, as well as the ambiguity of some regulatory issues regarding the tax.

He stressed the existence of communication between the management of the outlet and the concerned authorities, to clarify some of the things related to different types of sweetened beverages.

Siddiqui explained that the existence of the old price on the shelves means calculated at the payment box, since it has not yet been modified in the electronic system of the outlet, and therefore applies to consumers.

Retail expert Davy Nagpal called on the country's outlets to expedite their readiness to implement the tax, comply with the various rules in its implementation, respecting consumer rights, and increase trust between the outlets and consumers.

«Sweetened Beverages»

The “sweetened beverage” included in the selective tax is any product added to a source of sugar or other sweeteners that is produced to be ready for consumption as a drink, concentrates, powders, gel or extract, or any form that can be converted into a sweetened beverage.

The definition of “sweetened beverages” is excluded: a beverage containing at least 75% milk from the ready-to-drink content, a beverage containing milk substitutes at least 75% of the ready-to-drink content, infant formula, or infant foods. Drinks for special feeding purposes are excluded.

«Economy»: the status of price inherent right of the consumer

The Director of the Consumer Protection Department at the Ministry of Economy, Dr. Hashem Al-Naimi, called on the outlets to commit to apply the new prices of sweetened beverages, in accordance with the relevant regulations in this regard, and the obligation to put prices on the shelves, in order to respect the inherent right of the consumer to know the prices of the goods he buys.

He added that the ministry held a series of meetings with traders before the implementation, to emphasize the importance of setting the prices of all goods in a clear and transparent, pointing out that the ministry will carry out intensive inspection campaigns, in cooperation with local economic departments and local authorities, to monitor markets, and apply sanctions in the absence of Prices, or increase taxable goods over their original prices.