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

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  • Last Updated on 15 October, 2025

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UAE 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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied