The Qatari government has given its nod to a draft law to impose selective tax on goods considered harmful to humans and environment as well as luxury items.
Once the new tax comes into effect, soft and energy drinks as well as tobacco products will become more expensive, reported Gulf Times.
The Ministry of Finance prepared the draft law, in accordance with a unified GCC agreement for selective tax taken a few months ago.
The decision stipulates uniform imposition of selective tax in GCC countries, in accordance with the schedule of goods and percentages set in the resolution.
Under the draft law, selective tax will be imposed on ‘goods harmful to human health and environment, and luxury goods produced domestically or imported and set forth in the table attached to the law, and in accordance with the tax rates specific to it’.
Selective tax is different and separate from value-added tax (VAT) of 5% that is to be implemented across the Gulf countries in 2018. According to some recent media reports, selective tax would be ‘heavy’ in the GCC member states when it is effected.
Younis Haji Al Khoori, undersecretary at the UAE Ministry of Finance, was quoted as saying that ‘GCC states had reached an agreement to double the tax on tobacco products to 200%.’
Qatar’s Ministry of Development Planning and Statistics had observed in an official report last year that “the possibility of new taxes, such as a ‘sin tax’ and the introduction of VAT in 2018 will nudge up Qatar’s consumer price inflation.”
Who says alcohol is harmful ? My Cuban Shotputter used to compete after downing a glass of an amber nectar from Havana
Indeed. It should be ban since it's harmful, that's the only way to save the society.
Oh no! There must be a tax on alcohol. But when they say harmful, that must be banned.
Hope there's no tax on alcohol- hic!