17 shops warned over tax violation

dubai — The Dubai Economy has booked 17 trading establishments for exploiting the excise tax on carbonated and energy drinks as well as the tobacco products, which came into effect on October 1.

The department said it issued ticket against the errant sales outlets after receiving eight complaints from consumers and 21 notes. This is besides the inspection on sales outlets and markets in Dubai.

Arabic daily Emarat Al Youm reported the violations varied between limiting the quantity of cigarettes sold to customers and selling them for the new price even before the tax came into effect.

The outlets booked were also said to have sold soft (carbonated) drinks, on which the old price was printed, at the new price.

Mohamad Ali Rashid Lootah, executive director of the commercial compliance and consumer protection sector at the Dubai Economy, said if the outlets were found repeating the offences, the department will have to name and shame the shops.

He said most of the complaints received were on the first two days after the excise tax came into place.

Lootah said the complainants reported about selling them a limited quantity of cigarettes at end of last month, days before the tax was implemented. The outlets were then warned over the matter.

“Seven groceries have been also booked after they sold soft drinks, on which the old price was printed, at the new price,” he pointed out.

Lootah said merchants must sell the old stock at the old price given on the product, until the stock is over.

He noted that energy drinks and tobacco that do not have price mentioned thereon, are sold for the new price because it would be difficult to detect the violation.

reporters@khaleejtimes.com