The UAE has announced a new excise tax system for beverages, effective January 1, 2026, that will tax drinks based on their sugar content per 100 ml. The move aims to promote healthier choices and reduce sugar consumption nationwide.
Drinks will be taxed under a tiered system according to sugar levels — high, medium, low, or zero sugar.
Energy drinks will continue to be taxed at 100%.
Natural-sugar beverages without added sweeteners may be exempt.
Manufacturers and importers must provide certified sugar-level reports, update product registrations, and revise labeling before the new system begins.
Consumers: Expect price increases for high-sugar drinks, while low- and zero-sugar options may become more affordable.
Businesses: Beverage companies may reformulate products to lower sugar content and reduce tax impact. Retailers will need to adjust pricing and product labeling accordingly.
This initiative supports the UAE’s commitment to public health and aligns with global standards to encourage reduced sugar intake and healthier lifestyle choices.
