Waitrose has announced they will charge 25 fils per plastic bag in their stores across the UAE. Reuters
Waitrose has announced they will charge 25 fils per plastic bag in their stores across the UAE. Reuters
Waitrose has announced they will charge 25 fils per plastic bag in their stores across the UAE. Reuters
Waitrose has announced they will charge 25 fils per plastic bag in their stores across the UAE. Reuters

Waitrose introduces 25 fils charge for a plastic bag across shops in the UAE


Janice Rodrigues
  • English
  • Arabic

Carrying reusable shopping bags when heading to the grocery shop has long been praised as a way to help the planet. And now more UAE stores are reinforcing this sustainable practice by levying fees on disposable plastic bags.

British supermarket chain Waitrose has introduced a charge of 25 fils per bag across its shops in the UAE as part of its sustainability programme, the company announced on October 7.

As part of its Partners Against Waste sustainability programme, all plastic bag proceeds will be donated to the non-profit conservation organisation Emirates Nature-WWF.

“This new charge is part of a gradual phase-out in line with the policies being introduced by the government across the UAE – and one that we are committed to following,” says Sunil Kumar, chief executive of Fine Fare Foods, which runs Waitrose in the UAE.

“We are dedicated to reducing our impact on the environment, and while we know there is still a lot of work to be done, the removal of single-use carrier bags is a major step in the right direction. So far, we’ve received really positive feedback from our customers.”

This is not the first time the supermarket, which has 12 branches across Dubai and Abu Dhabi, charged a fee for plastic bags. In 2018, it had a trial period during which plastic bags were priced at 25 fils for 12 weeks at five shops in Abu Dhabi.

The initiative was designed to encourage residents to think about the plastic waste they generate. According to the company, the use of the plastic bags fell by 74 per cent as a result during that time.

Waitrose is not the first shop to charge for disposable bags in the UAE on a permanent basis, though. Choithrams rolled out a 10 fils fee per plastic bag in selected stores in February this year.

According to Rajiv Warrier, chief executive of the GCC region, this has reduced plastic bag consumption by about 30 per cent.

"Sustainability has always been a key initiative for Choithrams. We are committed to adopting sustainable solutions to optimise water and energy use, reduce and recycle plastic waste to address the major challenges that have an impact on our environment and our society," he adds.

Meanwhile, a representative for Spinneys said the supermarket chain is "reviewing plastics across the supply chain at Spinneys as part of the 2025 sustainability strategy – plastic bags will be considered as part of this".

According to the UAE Ministry of Climate Change and Environment, about one billion plastic bags are used in the country every year – an average of 1,184 a person.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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