The Federal Tax Authority has raised the minimum selective price imposed on cigarettes to a minimum of 40 fils per cigarette sold in the country, so that the minimum is eight dirhams for the package containing 20 cigarettes, as of December 1, 2019.
The CMA said in press statements today, that the minimum is higher than the rate (100%), which is the rate of weakness for the first phase of the tax for cigarettes.
The agency pointed out that the decision targeted cheap types of cigarettes, which can be more harmful, after many consumers went to types of low-quality products when the application of the first phase of the tax.
Al Bustani pointed out that according to Cabinet Decision No. 55 of 2019 on the selective price of tobacco products, a minimum selective price will be applied. The selective tax rate is AED 8 for a pack of 20 cigarettes, and the selective price per gram of hookah tobacco, ready-to-use tobacco and other similar products will be AED 0.1, each 250 gram pack will have AED 25 .