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Mon, Nov 10, 2025 | Jumada al-Awwal 19, 1447 | Fajr 05:13 | DXB 
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New UAE sugar tax on beverages takes effect January 2026
The change in policy mandates taxation on sweetened beverages to be based on their sugar content, rather than their product category — which is a 50 per cent excise
The UAE’s Ministry of Finance on Monday said that it has completed a set of proposed legislative amendments, including setting the various levels of a tiered volumetric model based on sugar content or other sweeteners for sweetened beverages.
The ministry announced that the updated policy will come into effect at the national level from January 1, 2026.
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The new regulations will also cover a clear mechanism that enables taxable persons who have imported or produced goods subject to a 50 per cent excise tax prior to the amendments coming into effect, and whose tax liability decreased as a result of these amendments (before selling the goods for which tax was previously paid), to deduct part of the previously paid tax.
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The ministry elaborated that this initiative is part of GCC countries' decision to adopt a tiered volumetric model for excise tax on sugar-sweetened beverages (SSBs).
The amendments aim to establish a comprehensive legal and regulatory foundation that ensures the smooth implementation of the updated policy at the national level, with effect from 1 January 2026.
It added that the proposed amendments will "foster a competitive tax environment".
Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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