UAE to Introduce Sugar-Based Excise Tax from 2026

UAE, 18 July, 2025 : Starting 2026, the UAE will move away from a flat 50% excise tax on sugary drinks and adopt a sugar content-based tax structure, the Federal Tax Authority (FTA) has announced.

This marks a major shift from the current regime, where all sweetened beverages are taxed at 50%, regardless of sugar levels. The new model aims to promote healthier consumption and reward manufacturers who reduce sugar in their products.

Health-conscious producers, who have already lowered sugar content, see this as a positive incentive. The change aligns with UAE’s broader public health strategy to combat diabetes and obesity, while encouraging local F&B production.

The move mirrors international practices, like the UK’s sugar tax, which led to a 40% drop in sugar levels in beverages.

Beverage makers now have ample time to reformulate their products ahead of the 2026 implementation.

Source: gulfnews.com