[Global IDT Insights] UAE Introduces Tiered Excise Tax on Sugar-Sweetened Beverages

Editorial Team – [2025] 179 Taxmann.com 296 (Article)

1. UAE introduces tiered volumetric excise tax model for sugar-sweetened beverages

The United Arab Emirates has announced an amendment to the excise tax mechanism applicable to sugar-sweetened beverages (SSBs). The revised model links the tax value per litre of a SSB to its sugar content per 100ml, replacing the previous flat rate system, which was based on product classification.

The change aims to promote public health by reducing sugar consumption and encouraging manufacturers to lower sugar levels in beverages. The updated mechanism will take effect at the beginning of 2026, pending implementing legislation, giving suppliers, importers, and stakeholders adequate time to prepare and align with the new requirements.

This initiative supports Gulf-wide tax policy integration and promotes taxation as a tool for sustainable development. The system was developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national health objectives and to deliver measurable improvements in dietary consumption patterns.

Further details will be announced soon to assist businesses across the UAE in achieving full compliance with the updated policy, given that sufficient time will be provided for the implementation of the new mechanism.

Source – Official News

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