UAE excise tax on sweetened beverages to vary by sugar content

The UAE is introducing a major change to its excise tax on sugar-sweetened beverages.

The Ministry of Finance and the Federal Tax Authority have announced a new tiered tax system that links the tax rate per litre to the drink’s sugar content per 100ml.

This means: the more sugar a drink contains, the higher the tax it will face — replacing the current flat-rate tax across all sugary drinks.

Set to take effect at the start of 2026, the change is part of a wider push to promote healthier lifestyles, reduce sugar consumption, and encourage manufacturers to cut back on sugar in their products.

Authorities say the updated model better reflects the health impact of sugar and gives consumers more power to make informed dietary choices.

The new system was developed in coordination with the Ministry of Health and Prevention and aligns with the UAE’s sustainable development goals.

Officials have confirmed that businesses will be given ample time to adjust, with support and awareness campaigns planned to ensure a smooth transition.

This also includes updating internal systems, reviewing product formulations and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model.

More details are expected soon as the final legislation is prepared.

Ministry of Finance and Federal Tax Authority announced a change in how the Excise Tax on sweetened beverages is applied. pic.twitter.com/5Q7nHVYWGx

— وزارة المالية | الإمارات (@MOFUAE) July 18, 2025