UAE to impose new tax structure on sugary drinks

The UAE will implement a revised excise tax structure for sugar-sweetened drinks from January 1, 2026.

Under the “tiered-volumetric model”, the amount of tax imposed is linked to the quantity of sugar and other sweeteners per 100ml of the beverage, the UAE state-run Wam news agency reported. 

The Federal Tax Authority said the decision is part of the government’s efforts to encourage healthier lifestyles.

Via the EmaraTax digital tax platform, the authority has launched a service for registering sweetened drinks in line with the new excise calculation, replacing the current flat-rate tax.

As of January 1, all producers, importers and stockpilers of sweetened drinks will have to obtain a conformity certificate for sugar and sweetener content through the website of the ministry of industry and advanced technology.

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If no certificate is submitted, the beverage will be classified as “high sugar” until a laboratory report is provided indicating that its sugar content is below the threshold for this category.

Energy drinks will remain subject to excise tax at 100 percent of the excise price and not subject to the tiered-volumetric model.

The UAE introduced an excise tax in 2017, targeting products that are mostly harmful to health. In 2019, a 50 percent tax was applied to carbonated drinks containing added sugar or sweeteners, alongside a 100 percent tax on energy drinks and tobacco products.