Departing airport passengers won't pay tobacco tax, Dubai Duty Free says

The airport retailer said the new excise tax of 100 per cent will apply to arrivals but not departures

Departing passengers from Dubai Airports will not be subject to new tobacco taxes that came into force on October 1

Dubai Duty Free (DDF) has confirmed arriving passengers only will pay the new 100 per cent excise tax on all tobacco products, and only if they purchase more than 400 cigarettes

They will, however, be subject to the same 100 per cent excise tax on caffeinated sports drinks, and 50 per cent tax on soft drinks that is now in place for the rest of the UAE

Excise duty will be applicable in all airport shops for carbonated and energy drinks but DDF predicts there may be a spike in sales as airport passengers can take advantage of tax-free tobacco

“All tobacco products will be free of excise on departures and will be subject to current customs allowances on arrivals,” said a spokesman

Carbonated and energy drinks across all of our locations will be subject to excise as they will be presumed to be consumed after purchase

Cigar dealers in the UAE have said the tax could hit their industry hard, as the most expensive cigars on sale double in price to Dh700

However, those cigars will be exempt in airports in Dubai, according to DDF

“People are already stocking up in duty free in other countries,” a UAE-based cigar dealer said