The UAE Ministry of Finance and the Federal Tax Authority (FTA) have announced a significant update to the Excise Tax framework. Starting early 2026, excise tax on sugar-sweetened beverages will be calculated based on actual sugar content, rather than being applied solely by product category.
What This Means:
- Manufacturers and importers will need to analyze and declare sugar content accurately.
- Products with higher sugar concentrations will face higher tax liabilities.
- The goal is to promote healthier consumption and encourage the reduction of sugar levels in beverages available in the UAE market.
This change is part of the UAE’s broader strategy to align public health policies with taxation, driving accountability in the food and beverage sector.
Why It Matters for Your Business:
If you are in the beverage industry, this update could directly impact:
- Product pricing and formulation
- Tax planning and compliance obligations
- Supply chain reporting and documentation
Now is the time to review your excise registration status, evaluate sugar content declarations, and strategize reformulation where needed.