Is excise tax charged on carbonated drinks?

Article 11 – Compatibility with More Than One Definition 1. Where a product meets the definition of more than one Excise Good specified in this Decision, it shall be classified as the Excise Good subject to Tax at the highest rate. 2. Where a product meets the definition of Carbonated Drinks and Sweetened Drinks as per this Decision, it shall be classified as a Carbonated Drink. Cabinet Decision No. 52 of 2019 and its amendments – As published by the Ministry of Finance 5

Article 2 - Application and Scope of Tax 1. The provisions of this Decree-Law shall apply to the Excise Goods specified by a Cabinet Decision at the suggestion of the Minister. 2. Tax shall be imposed on the following activities related to Excise Goods: a. Production of Excise Goods in the State, where such production was in the course of doing business. b. Import of Excise Goods. c. Release of Excise Goods from a Designated Zone. d. Stockpiling of Excise Goods in the State, where such Stockpiling was in the course of doing business.

Article 2 - Excise Goods For the purposes of Article 2 of the Decree-Law, Tax shall be applicable on the following Excise Goods: 1. Tobacco and tobacco products 2. Liquids used in electronic smoking devices and tools 3. Electronic smoking devices and tools 4. Carbonated drinks 5. Energy drinks 6. Sweetened drinks

Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts 1. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks by mixing such goods with another product by the retailer, shall be the higher of the following: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if applicable; Ministerial Decision No. 1 of 2025 – As published by the Ministry of Finance 2 b. The Designated Selling Price for this Good to the retailer that is identified, and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the Tax included therein in accordance with the mechanism provided for in Clause (2) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 2. For the purposes of implementing the mechanism referred to in paragraph (b) of clause (1) of this Article, the “Designated Selling Price” is the “Designated Retail Sales Price”. 3. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks, which are not referred to in Clause (1) of this Article, is the Excise Price calculated in accordance with Clause (1) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 4. The Taxable Person shall keep the records required to evidence the “Designated Selling Price” of the excise good, and any deductions made thereon and the quantities sold.

Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts 1. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks by mixing such goods with another product by the retailer, shall be the higher of the following: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if applicable; b. The Designated Selling Price for this Good to the retailer that is identified, and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the Tax included therein in accordance with the mechanism provided for in Clause (2) of Article (13) of Cabinet Decision No. 52 of 2019 referred herein. 2. For the purposes of implementing the mechanism referred to in paragraph (b) of clause (1) of this Article, the “Designated Selling Price” is the “Designated Retail Sales Price”. Ministerial Decision No. 236 of 2019- Issue Date: 29th of September 2019 – Unofficial translation 2 3. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks, which are not covered by Clause (1) of this Article, is the Excise Price calculated in accordance with Clause (1) of Article (13) of Cabinet Decision No. 52 of 2019 referred herein. 4. The Taxable Person shall keep the records required to evidence the “Designated Selling Price” of the excise good, and any deductions made thereon and the quantities that have been sold.