The excise tax in UAE is an indirect tax imposed on goods that are considered harmful to the environment and human health such as carbonated drinks, tobacco products, energy drinks, etc. Just like VAT, the excise tax is collected earlier in the supply chain, which eventually affects the final price of the excise goods. The Federal Tax Authority (FTA) in the UAE mandates importers and manufacturers to register for excise tax, submit their returns timely, pay their due taxes, and maintain tax records effectively.