The UAE, Excise Tax is currently applied on the following goods:

• Tobacco and tobacco products.
• Liquids used in electronic smoking devices and tools.
• Electronic smoking devices and tools.
• Carbonated drinks (note that this excludes sparkling water).
• Energy drinks.
• Sweetened drinks.

The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services.
All businesses that import, produce or release excise goods from a designated zone must consider their registration requirements and compliance responsibilities related to filing and paying Excise Tax.

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