E-Paper
Sign In
Fri, Nov 07, 2025 | Jumada al-Awwal 16, 1447 | Fajr 05:11 | DXB 
31.3°C
iPhone | iPad
Android
New UAE rule: Tax on sweetened beverages to depend on sugar levels
The tax amount will now be based on the sugar content in each product, rather than just its category, encouraging manufacturers to reduce sugar levels
In a landmark move aimed at making food in the country healthier, the Ministry of Finance and the Federal Tax Authority announced a change in how taxes will be applied to sweetened drinks.
On Friday, July 18, the authority said that from 2026, the tax applied on sweetened beverages will be based on their sugar content, rather than their product category — which is a 50 per cent excise.
Recommended For You
The announcement has been made well in advance to give manufacturers time to review their product formulations and implement necessary changes.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
In turn, the policy could help make healthier beverages more accessible to residents by incentivising a reduction in sugar content.
The authority added that it will hold awareness campaigns to ensure that stakeholders can understand this new move.
What is excise tax?
Excise tax is imposed on specific goods that are generally harmful to people's health or the environment. Its implementation aims to reduce the consumption of such products while generating government revenue that can be reinvested in essential public services.
The UAE levied this tax on some products in 2017, which includes carbonated drinks, energy drinks and products with tobacco.
In 2019, this was expanded to include electronic smoking devices, liquids used in such devices and sweetened drinks.
The country has consistently encouraged healthy eating habits among residents, with Abu Dhabi recently announcing a ban on junk food in schools. Earlier this year, Abu Dhabi’s Department of Education and Knowledge released a policy outlining clear guidelines for providing sustainable and health-conscious food options.
How much is it?
Here is the full list of tax imposed on the products that are generally harmful to health:
50 per cent on carbonated drinks
100 per cent on tobacco products
100 per cent on energy drinks
100 per cent on electronic smoking devices
100 per cent on liquids used in such devices and tools
50 per cent on any product with added sugar or other sweeteners
Sweetened beverages will not be included in the above list from 2026, when the new policy will be implemented.
Meher Dhanjal
Meher Dhanjal is a Digital Journalist who breaks news first and breathes second. She loves chasing page views and finding stories that tug at readers’ heartstrings.
Don’t just scroll. Know it all. Sign up for your daily UAE news fix.
Get the top stories of the day right in your inbox.
