«Truth»: Tax revenues will be directed to service and development projectsTruth Consultancy
The selective tax is considered to be indirect and flexible taxes in application and collection,” said Rida Muslim “, general manager of Truth Economic Consultancy.
He pointed out that the UAE legislator was logical in imposing this tax on goods that have negative effects on human health, such as tobacco, soft drinks and energy drinks, and identified it for tobacco as 100%, as one of the most harmful goods to humans.
He pointed out that the tax imposed in many countries of the world, stressing that the proportion imposed on tobacco is an approach to the proportion imposed by the UAE, and international experiences indicate that the imposition of this tax reduces the consumption of individuals for harmful products, after rising prices, The prices of tobacco products are expected to rise significantly. He stressed that the UAE aims to impose these taxes, to increase the revenues of the federal government as it seeks to diversify sources of economic income, as the expectations of the Ministry of Finance to the arrival of new tax revenues expected to be imposed in the state to seven billion dirhams a year, will be a good proportion Of the federal budget, and these revenues from taxes will be in the interest of the population of the state, as it will be directed to service and development projects.