Want to know about new cigarette prices in Dubai? You have come to the right place! In this blog post, we update you on the latest cigarette prices in the UAE following the new excise tax laws by the government.
Last year, the UAE government introduced new excise tax rates to regulate the pricing for commodities deemed to be harmful to human health or the environment. Hence, the new tax rates also apply to products containing tobacco, including cigarettes, pipes, shisha and more.
While the government announced the first revised cigarette prices in the UAE in 2018, there was a further increase at the end of 2019, in the interest of safeguarding public health and safety. These taxes, announced by the Federal Tax Authority (FTA), came into effect on 1 December 2019. The new excise tax percentage in the UAE on products containing tobacco is 100%, and this automatically increases the prices of cigarettes and e-cigarettes in the country.
The FTA states that the new taxes aim towards “limiting the consumption of products that harm an individual’s health.”
Latest Cigarette Prices in Dubai
Currently, cigarette prices in Dubai, and elsewhere in the UAE, start from AED 8.50. This minimum price applies to all cigarette brands in the UAE as well as tobacco products traded locally.
The standard cigarette pack containing 20 sticks, previously cost around AED 4 to AED 6 and now costs AED 8.50. The breakdown for this includes 48 fils VAT and AED 4.76 excise tax.
This brings the cost of cigarettes in Dubai to 40 fils per stick. There was initially some confusion that cigarette prices in the UAE had risen by AED 8 per pack, but this is misleading.
Moving on, every carton of 10 packs will now cost at least AED 80 more. If you want to buy Mu’assels or waterpipe tobacco, you can do so at the current minimum of AED 25 for 250 g (or 10 fils per gram).
Along with protecting the community from products that damage public health and the environment, the increase in prices also prevents price manipulation for the purpose of tax evasion.
Popular Cigarette Brands in Dubai
On average, most cigarette packs cost AED 10, while brands that cost more than AED 20 per pack had an increase of only AED 1. This especially includes Malboro cigarettes that already had a 100% price increase three years ago. Another 5% increase in VAT brought the cost to AED 21 per pack. And now another dirham has been added to the cost in excise tax.
Cheaper cigarette brands in the UAE include Pine, Bone, 007 and Three Stars, while Malboro and Davidoff are popular expensive brands in the country. The latter companies have also released cheaper brands following the excise taxes of 2018. For instance, Marlboro also operates Chesterfield, which currently costs AED 13.
The cheaper cigarette brands in the UAE used to cost around AED 4 per pack, but the prices have more than doubled now.
What about Electronic Cigarettes?
Schedule 24 of the GCC Common Customs Tariff includes electrically heated cigarettes as part of Tobacco products. This also includes liquids used in electronic smoking devices, whether or not containing nicotine, in addition to e-cigarette accessories.
That’s about it. There is some confusion among store owners who are waiting for the official new cigarette price list in UAE 2020. In any case, your favourite cigarette is now costlier than what it was couple of months ago.
Looking for the best places to buy tobacco products? Check out our list of the best tobacco and shisha shops in Dubai.
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