Officials in companies for the production of sweetened beverages, demanded to link the proportion of "selective tax" to sugar in sweetened beverages, so that the rate of tax increases in the case of high sugar, while the tax rate in the case of less sugar.

They stressed that despite the expectation of some suppliers and distributors of effects in the producing companies after the extension of the scope of the application of the tax to include sweetened beverages, early next month, but it is premature to talk about any specific effects, especially as these effects may be temporary and related to the first period of the application of the tax.

For its part, the Ministry of Finance welcomed the proposal as a good idea, asking companies to submit this proposal in detail along with any other ideas or proposals on the selective tax, for consideration and action.

Apply the tax

Agthia Group Chief Executive Tariq Ahmed Al-Wahidi said that the decision to apply the selective tax on sugary beverages is a good decision for the benefit of consumers. The rate of sugar, while the tax rate is reduced in the case of less sugar.

Al-Wahidi said that this measure pushes the companies producing sugary drinks to find a suitable and innovative mechanism to develop their production to attract consumers, as well as companies to reduce the sugar content of drinks and sweetened juices, which is in the interest of consumers, and maintain their health and safety.

He pointed out that the introduction of the selective tax on sweetened drinks, as of December 1, may have negative effects in some companies producing sugar drinks and juices containing sugar, especially at the beginning of the application of the tax, but this effect will be very positive for companies that produce Fresh and sugar-free juices. Al-Wahidi stressed that the application of the selective tax on sugary beverages will push companies operating in the sector, in general, to develop their production, in light of the strong competition among companies operating in this sector to attract consumers, and increase the demand for sales of unsweetened beverages.

Sweetened drinks

For his part, Amjad Jalal, general manager of Binghati Juice Factory, said that "the correlation between the percentage of tax imposed on sweetened beverages and the amount of sugar used in these drinks, a very good proposal, and reduces the expected effects of the tax on many companies Producing.

He explained that «each company has its own composition in the production of juices and sweetened beverages, so the application of the tax, regardless of the amount of sugar added, will lead to the existence of equality, unfair, between companies that are keen to reduce the amount of sugar and companies that put large amounts of sugar ».

“Despite the expectation of some suppliers and distributors of negative effects in the producing companies after the application of the tax, it is premature to talk about any effects, except after the application of the tax, especially since any negative effects, if any, may be temporary and related to the first period of application of the tax,” Jalal said. ».

Added sugar

The general manager of the national food company «Melco» agreed,

Wachner, in the importance of linking the tax rate to added sugar for sweetened beverages, pointing out that it depends on the tax system that is applied.

He called for the need to educate consumers that excessive consumption of too much sugar is harmful to consumers.

Walner pointed out that there are three types of juices, the first juices that contain 100% juice without the addition of sugar, and the second juice «Nectar» which contains a proportion of fruits ranging between 25 and 50% of the total, which is a low-sugar drinks, and third juices that contain On fruits in the range of 10% and add a lot of sugar.

He pointed out that some of the juice and beverage companies are looking for other alternatives to reduce sugar, while retaining the taste of sugar, because the origin in the juice to be «sugary taste», pointing out that it is known that the population of the Middle East and the Gulf of the most sugar consumed globally.

For his part, Undersecretary of the Ministry of Finance, Younis al-Khoury, that «the proposal to link the proportion of tax rate of sugar in sweetened beverages, is a good proposal», explaining that the ministry encourages new ideas and initiatives in general.

Al-Khouri called on companies that produce sweetened beverages and adopt this proposal in detail, along with any other ideas or proposals on the selective tax, which will be applied early next month, to the Ministry of Finance, through local departments in the UAE, to study them thoroughly Aspects and take the necessary action.

Juices «Nectar»

The general manager of the national food company «Melco»,

“After the selective tax on sweetened beverages, early next month, it is expected that some consumers of nectars will tend to consume type 1 juices, which include juice without added sugar, given the high prices of nectars after It is expected that the basic change in consumption will reach the third type, which is high sugar after high prices, especially as it was aimed at low-income mainly, where they may turn to other products.