UAE expands taxes to target vaping and more sugary drinks

The United Arab Emirates will start taxing vaping devices and e-cigarettes at 100% and all sugary drinks at 50% as economic growth stutters and the government looks for ways to boost its revenue

DUBAI, United Arab Emirates -- The United Arab Emirates will start taxing vaping devices and e-cigarettes at 100% and all sugary drinks at 50% as economic growth stutters and the government looks for ways to boost its revenue.

The UAE has long lured foreigners with the promise of a tax-free lifestyle, but after oil prices fell sharply in mid-2014 the government introduced a sweeping 5% value-added tax last year on most goods and services. In 2017, it introduced a 100% tax on tobacco and energy drinks, and a 50% tax on soft drinks. The new tax will include other sugary beverages like sports drinks.

Economic growth in the UAE slowed last year to 1.7% and non-oil growth was at 1.3%.