In a move aimed at promoting healthier lifestyles, the UAE will amend its excise tax on sugar-sweetened beverages starting in 2026. Instead of a flat rate, the new system will tax drinks based on their actual sugar content per 100ml, meaning the higher the sugar levels, the higher the tax.
The change, announced by the Ministry of Finance and the Federal Tax Authority, is designed to encourage reduced sugar consumption and push manufacturers to reformulate products with less sugar.
This tiered approach was developed in collaboration with the Ministry of Health and Prevention and aligns with the UAE’s broader sustainable development goals, including improved public health.
Authorities believe the new model gives consumers clearer information and greater control over their dietary choices by more accurately reflecting the health impact of the drinks they buy.
For businesses, this means reviewing product formulas, updating tax records, and aligning internal systems with the new requirements. Officials have confirmed that a transition period and support programmes will help companies adapt smoothly.
More details on tax rates and product categories will be shared as the final legislation is prepared.