ABU DHABI — The UAE will soon change how sugar-sweetened beverages are taxed, shifting from a fixed rate to a sugar content-based model. The updated excise tax rule will come into effect from January 2026, the Ministry of Finance and the Federal Tax Authority announced.
Under the new system, the amount of tax applied per litre of a sugar-sweetened beverage will depend on how much sugar it contains per 100 millilitres. Beverages with higher sugar content will be taxed at a higher rate.
This move is part of a broader effort to promote public health by encouraging manufacturers to reduce sugar levels in their products. Authorities hope the new policy will help shift consumer habits toward healthier choices.
The tiered tax model gives businesses, importers, and suppliers more than a year to prepare. Companies will be expected to review product formulations and update internal systems before the new rule is enforced.
Public awareness campaigns will also be rolled out to ensure that stakeholders and consumers understand the new policy before it takes effect.
A statement from the ministry confirmed, “Businesses across the UAE will be granted sufficient time to prepare for the updated mechanism.”
