The Federal Tax Authority confirmed that the process of applying the expansion of the selective tax system, to include sweetened drinks, electronic smoking devices and devices and the liquids used, took place smoothly and easily, given the flexibility of the procedures and mechanisms applied by the authority, pointing out that the registration rate in the system is high.

She explained to «Emirates Today» that the customs and economic departments in the country are closely monitoring the application of the selective tax and the expansion that has been made on it, indicating that companies comply with modern legislation to expand the range of selective goods.

Control process

In detail, the Federal Tax Authority confirmed that the customs and economic departments of the country are closely monitoring the application of the selective tax, the expansion that has been made of it to include sweetened drinks, electronic smoking tools and devices and used liquids, which came into effect at the beginning of this December.

In response to inquiries from “Emirates Today”, the authority added that, from the first day of the implementation of Resolution No. 52 of 2019, import declarations for new selective goods began to be received, in addition to a gradual increase in tax registration requests, and the registration of goods defined in the aforementioned decision, which gives a good impression about the concentration Companies comply with modern legislation to expand the scope of selective goods.

Existing cooperation

She added: “Since the application of the selective tax in October 2017, and cooperation has existed between the authority and customs departments in the state, as it is the first row for goods to enter the country, and the first supply point for the selective tax on selective goods imported, and accordingly, control over the application of the tax on selective goods, The expansion thereof takes place at the point of import, in cooperation with the customs departments and the integrated systems between the authority and the departments. As for monitoring in the markets, the authority’s strategic partners are the economic development departments, as efforts are coordinated in controlling the selective goods sold in the market. Local markets, and with the expansion of selective goods, supplemented by cooperation with the departments efforts in this area, and focus control in the markets on the new selective goods ».

The commission noted that in the event of violations, or non-compliance, there are specific penalties in Cabinet Resolution No. 40 of 2017 to be applied.

She affirmed that the process of applying the expansion of the selective tax system to include sweetened drinks, electronic smoking devices and devices and the used fluids took place smoothly and easily, due to the flexibility of the procedures and mechanisms applied by the authority, which are done through a new and updated electronic system, and is characterized by the accuracy of the procedures for registering selective goods according to clear requirements .

She said that the registration rate in the system is high, bearing in mind that most of the target groups are pre-registered to produce other selective commodities.

Expanding "selectivity"

The commodities to which the selective tax is applied have been expanded, as of December 1, 2019, to include 50% sweetened drinks, 100% electronic smoking devices and tools and the liquids used in them, in addition to tobacco and tobacco products, energy and soft drinks that have started applying the selective tax As of the beginning of October 2017.

The Authority's procedures are carried out through an updated electronic system.