Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates announced plans to impose a "health tax" that will tax cigarettes at roughly 100% of their value, beginning later this year.
DUBAI - The six Gulf Cooperation Council (GCC) nations ?" Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates ?" announced earlier this week that cigarette taxes will rise sharply at the end of 2012, Emirates 24/7 reports.
Health ministers from the six-nation GCC endorsed what it characterized as a "health tax" earlier this month as part of an effort to curb tobacco consumption in the region, said Dr Widad Al Maidoor, head of the anti-smoking section at the UAE Ministry of Health.
"The new law is intended to reduce tobacco consumption in the GCC and envisages the imposition of a new tax called 'health tax,??" he said. "It will affect tobacco products and equipment used in its production and manufacturing??the tax will amount to 100% of the product??s value."
Maidoor said the new law would be enforced at the end of 2012 subject to its expected approval by the GCC finance ministers.
Cigarette dealers said despite the increase, cigarette prices in the GCC region are below those in advanced countries. "In Britain for example, a 20-cigarette pack now sells for??more than four times the prices here," said an owner of a supermarket in Abu Dhabi.