By Desmond Nleya
The UAE Ministry of Finance has finalized legislative amendments to introduce a new excise tax model on sugar-sweetened beverages, aligning with the Gulf Cooperation Council’s (GCC) tiered volumetric taxation framework. The revised policy is set to come into effect on January 1, 2026.
The new framework classifies beverages according to their sugar content or the presence of other sweeteners, allowing for a more accurate taxation mechanism that reflects consumption habits and potential health impacts.
To ensure a smooth transition, taxable entities that imported or produced goods under the current 50 percent excise tax — and whose tax liability decreases under the new model — will be eligible to deduct part of the previously paid tax.
The Ministry stated that the updated legislation aims to create a transparent and competitive tax environment while staying aligned with GCC fiscal policies. It also supports economic stability, strengthens trust between taxpayers and the government, and promotes healthier consumption choices.
Through these amendments, the UAE is advancing its financial modernization strategy, reinforcing both fiscal responsibility and public health goals.
Source: Emirates News Agency
