The government also plans to introduce excise taxes at rates of 100 percent for tobacco and energy drinks.

:: United Arab Emirates expects to issue laws on value-added tax and excise tax in the third quarter of this year, and to issue regulations covering implementation of those laws in the fourth quarter, a senior UAE official said on Tuesday.

Khalid Ali al-Bustani, director-general of the UAE’s Federal Tax Authority, was briefing reporters before the country introduces some of the biggest changes to its tax system in decades.

Along with the other countries in the six-nation Gulf Cooperation Council, the UAE plans to introduce VAT at a 5 percent rate in January next year.

The government also plans to introduce excise taxes at rates of 100 percent for tobacco and energy drinks and 50 percent for other sugary soft drinks.