FTA Introduces Tiered Excise Tax on Sweetened Drinks from 1 January 2026

UAE, 05 January, 2026: The Federal Tax Authority (FTA) has announced that a new Excise Tax mechanism on sweetened drinks, based on a Tiered Volumetric Model, will come into effect from 1 January 2026, in line with Cabinet Decision No. 197 of 2025 and amendments to the Excise Tax Law.

Under the new system, Excise Tax will be calculated per litre based on the total sugar and sweetener content per 100 ml, replacing the current fixed-rate method. The FTA stated that the move supports national efforts to promote public health and reduce the consumption of high-sugar products.

To ensure smooth implementation, the FTA has launched a new sweetened drinks registration service on the EmaraTax platform, powered by artificial intelligence. From 1 January 2026, all producers, importers, and stockpilers must obtain an Emirates Conformity Certificate for Sugar and Sweeteners Content in Beverages from the Ministry of Industry and Advanced Technology and submit it during product registration or update on EmaraTax.

The FTA warned that failure to submit the approved certificate will result in the product being classified as a high-sugar sweetened drink by default until laboratory evidence proves otherwise.

Under the new model, sweetened drinks are classified into four categories:

• High-sugar (8g or more per 100 ml): AED 1.09 per litre

• Moderate-sugar (5g to <8g per 100 ml): AED 0.79 per litre

• Low-sugar (<5g per 100 ml): AED 0 per litre

• Artificially sweetened drinks: AED 0 per litre

The FTA also confirmed that carbonated drinks will no longer be treated as a separate excise category, while energy drinks will remain subject to Excise Tax at 100% of the excise price under the existing rules.

Further details and guidance are available on the FTA’s official website.