The UAE will introduce a new tiered sugar tax from 2026 as it looks to promote public health and reduce consumption of sugary drinks.
The UAE Ministry of Finance and Federal Tax Authority (FTA) announced a major revision to the excise tax framework on sugar-sweetened beverages (SSBs), introducing a new sugar-based tiered tax system that will take effect in early 2026.
Unlike the current flat-rate model, the new system will link the tax per litre of beverage directly to its sugar content per 100ml—meaning the higher the sugar concentration, the higher the tax.
UAE sugar tax
This reform aligns with the UAE’s national health strategy to reduce sugar consumption, combat lifestyle-related diseases, and promote healthier dietary habits among consumers.
The amendment reflects a shift toward data-driven policy that incentivises manufacturers to reduce sugar levels in their products and empowers consumers to make more informed choices.
It also supports regional efforts to harmonise tax policy across the Gulf and reinforces the strategic use of taxation as a tool to drive sustainable development.
Developed in coordination with the Ministry of Health and Prevention, the new model is part of a long-term strategy to improve public health outcomes through fiscal legislation.
Businesses—including importers, suppliers, and manufacturers—will have sufficient time to adapt, with comprehensive awareness campaigns and technical guidance set to launch ahead of the 2026 rollout.
Further details, including implementing legislation and compliance requirements, will be released in the coming months.
