UAE Tobacco to Be Taxed 100%

quint · Oct 1, 2017

The United Arab Emirates has begun collecting new “sin” taxes on tobacco products, energy drinks and soft drinks.
Beginning Sunday, tobacco and energy drinks will be taxed at 100 percent and soft drinks at 50 percent. Shoppers could be seen stocking up the day before.

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I don't know if we have any board members here from the UAE, but this is just another example of sin taxes being heavily imposed on the working folks. Of course it won't impact the wealthy monarchy or others in government. And not only are they going after tobacco, but also sugar and caffeine.

aristokles · Oct 2, 2017

I'm surprised the tobacco is allowed at all in that country with its religious restrictions on it. The drink tax is curious, though.

sablebrush52 · Oct 2, 2017

Another reason I won't be setting up my pineapple farm there, any time soon.

jvnshr · Oct 2, 2017

I'm surprised the tobacco is allowed at all in that country with its religious restrictions on it.

I've been to Dubai once and yes tobacco is allowed there. The thing is it is very hot outside, so whatever you smoke doesn't make any sense and it is not allowed to smoke inside. Regarding the religious restrictions, it is debatable. UAE is not all about 4 niqab wearing women following a man. Dubai for instance is all about luxury cars, expensive apartments, beautiful beaches, huge shopping malls and extravagant night clubs.

aristokles · Oct 2, 2017

I guess I should have stated its religion's restrictions rather than Dubai's religious ones.

So...explain the taxes, if you will.

briarblues · Oct 2, 2017

quint, interesting that these items are all viewed at the same tax rate. But 100% isn't too steep, when you ask any Canadian.
BC Provincial tax is $0.239 per gram. 454 gram. So .... $108.50 CDN $ per pound. This is ONLY the provincial tax. There is still Federal Duty, tax, and GST above the provincial tax.
IF the wholesale cost on an LB of McClellands Bulk is ... say 50% of the selling price at SP, that would ball park it at just under $25.00 US a lb. Convert to CDN is around $33.00 a lb, wholesale. Now do the math..... from above. Looks like provincially around 3 x the wholesale cost is just the tax!
Regards

Michael J. Glukler

mso489 · Oct 2, 2017

Dubai strikes me as dreadful, a large city with no historical roots evident. I don't doubt there are a few remnants of what came before and maybe an archeological site or two, but mostly it's all in the past 20 or 30 years, mostly less time than that. A couple I knew of, who relocated there for a "big promotion" came home overtly unhappy. I don't know how they sell condos there, but some must find it exciting. No lure for me at all, nothing.

jvnshr · Oct 2, 2017

I guess I should have stated its religion's restrictions rather than Dubai's religious ones.

Aristokles, when I said

Regarding the religious restrictions, it is debatable.

I was talking about religion's restrictions. There is no clear strict rule about tobacco in Islam.

jvnshr · Oct 2, 2017

A couple I knew of, who relocated there for a "big promotion" came home overtly unhappy.

MSO, you are either rich or poor in Dubai. I felt poor and didn't like it.

mso489 · Oct 2, 2017

Watching rich people watch rich people isn't particularly enriching. New York's Greenwich Village, once a fertile mix of artists of every kind, entrepreneurs, dreamers and thinkers, has become a hedge fund ghetto. Half the real estate is investment not residence. Sad scene. Tourists come to see the artists -- it's a snipe hunt.

warren · Oct 2, 2017

And no one likes the tourists! Then there are the descendants of the original people who lived there. I'm betting some of them would prefer the woods, streams, and inter-tribal battles which used to occur in the area. Ahhhh, the inexorable march of time. I'm betting a retired NYPD guy could paint you a truer picture of Greenwich Village than the NYC visitors groups would want publicized.

quint · Oct 2, 2017

quint, interesting that these items are all viewed at the same tax rate. But 100% isn't too steep, when you ask any Canadian.
BC Provincial tax is $0.239 per gram. 454 gram. So .... $108.50 CDN $ per pound. This is ONLY the provincial tax. There is still Federal Duty, tax, and GST above the provincial tax.
IF the wholesale cost on an LB of McClellands Bulk is ... say 50% of the selling price at SP, that would ball park it at just under $25.00 US a lb. Convert to CDN is around $33.00 a lb, wholesale. Now do the math..... from above. Looks like provincially around 3 x the wholesale cost is just the tax!
Regards

Michael J. Glukle

Michael, believe me. I am fully aware of how outrageously overtaxed smokers are on tobacco in Canada and New Zealand. I feel really bad for you guys. They cannot outlaw tobacco directly, so the government overtaxes smokers in an effort to make lots of money and eventually kill off smoking (which is their ultimate goal). Sugar and caffeine 'luxury taxes' will come next once tobacco tax revenues start to fall off. For having such cheap pipe tobacco prices, there really is no excuse for each and every pipe smoker in the US to not have at least 200 lbs stockpiled.

warren · Oct 2, 2017

Well, other than the fact that 200 pounds will out last me easy. It would be the height of fiscal stupidity for me to stockpile more than I can reasonably expect to smoke before eating the dirt "sandwich." I rarely have more than a couple dozen tins in the house. Should I surprise the actuaries, I can always buy more in celebration. Money should be out making money, not sitting around waiting to be incinerated.

PaulTheScandinavian · Oct 4, 2017

Dear Mr Quint,just for added information,we here in Sweden&Finland,are in very similar situation with Canada,could you image,

our government publicly made an announce, 'our goal is make Finland smoke free country till 2025 hence during the past two years tobacco product prices went up considerably (around %35) and especially Roll Your owns and pipetobacco,exemplean average price for 1,75oz Mc Baren basic tobacco is reaching now $ 20 number and pack of marlboro cigs $7-cigars even more

so to say,tobacco war is ongoing

quint · Oct 4, 2017

Paulie, that's too bad. Looks like Western Europe is trying to eventually snuff out all tobacco use. Is it legal in Finland and Sweden to grow your own tobacco for personal use?

quint · Oct 4, 2017

Well, other than the fact that 200 pounds will out last me easy. It would be the height of fiscal stupidity for me to stockpile more than I can reasonably expect to smoke before eating the dirt "sandwich." I rarely have more than a couple dozen tins in the house. Should I surprise the actuaries, I can always buy more in celebration. Money should be out making money, not sitting around waiting to be incinerated.

Two pounds stockpiled for Warren, and 200 lbs for everyone else. :lol:

sablebrush52 · Oct 4, 2017

I guess I won't be ordering any Borkum Riff from the UAE...

PaulTheScandinavian · Oct 5, 2017

Mr Quint: Yes growing your own is completly legal, lately I'm starting pondering over on this idea,,

frozenchurchwarden · Oct 5, 2017

100% Tax, that’s funny.

I get charged $30 for 50 Grams.

Chances are Narcotics on the street are cheaper than Tobacco in Canada.

PaulTheScandinavian · Oct 9, 2017

Can't understand why such a liberal' country as Canada started hating tobacco products something fiercy

Btw(situation is the very same here-but this kind of Anti Tobacco nazism is more obvious&expectable to take place in the Scandinavian style sosicalism' than anywhere in Canada)

UAE Tobacco to Be Taxed 100%

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