Worried UAE smokers stock up on cigarettes

Groceries and smokers have started stockpiling cartons of cigarettes to avoid the new sales tax which will come into effect next month.

The new tax will shoot up the price of tobacco by 100 per cent. Interestingly, customers have find a way out to get rid of this by making advance payment to the groceries to reserve cartons of cigarettes for them.

Khaleej Times visited groceries after finding that smokers are queuing up to pile up cigarette packets, as much as they can, before the prices go up on October 1.

There are people who have already bought a large quantity of tobacco and stashed them in their homes. Some others visit groceries and sales outlets at petrol stations to collect as much as they can. The growing demand from customers is compelling the groceries to make up front payment as they are facing problems with the cigarette distributors and supermarkets.

According to groceries, they get only a limited number of cigarette cartons from the distributors now and are struggling to meet increasing needs from their tobacco clients. The grocery owners told Khaleej Times this made them ask their regular customers to pay in advance and collect their cigarette packets a few days later.

Meanwhile, the suppliers are also limiting the number of cartons they reserve for groceries. This resulted in shortage of cigarettes in groceries who say they are unable to meet the needs of their regular customers.

One seller said: "Cigarette can be kept at home intact at room temperature as they neither have to be kept in a cool environment, nor have an expiry date. So, if you stack up now, the cigarette budget will not be affected for several months."

Some other people surveyed by Khaleej Times shared apprehensions over price hike of carbonated drinks sold at restaurants, fast food chains and cinemas. Residents are eager to know how the taxes will be applied on their items so that they can set priorities for their purchases.

Source: Khaleej Times