The UAE Ministry of Finance has finalized proposed amendments introducing a tiered tax structure for sweetened beverages, which will take effect nationwide on January 1, 2026.
The revised excise framework will apply a “volumetric model” that bases tax levels on the sugar content or use of other sweeteners in each product. The move aligns with the Gulf Cooperation Council’s (GCC) collective decision to adopt a similar model across member states.
Under the new system, businesses that have already paid a 50 percent excise tax on imported or locally produced sweetened beverages before the amendments take effect may be eligible for partial tax deductions if their liabilities decrease under the new policy.
According to the ministry, the legislative changes aim to strengthen the UAE’s legal and regulatory foundation for excise taxation, ensure smooth national implementation, and “foster a competitive tax environment.”
