UAE to implement sugar-based tax on sweetened drinks

The United Arab Emirates (UAE) will implement a new sugar-content-based excise tax on sweetened beverages starting January 2026, the Ministry of Finance and the Federal Tax Authority (FTA) announced on Friday, July 18.

The move is part of a broader strategy to promote healthier consumption habits and reduce sugar intake across the population.

Under the revised model, the tax will no longer be applied at a flat 50 percent rate. Instead, it will be calculated based on the sugar content per 100ml—meaning products with higher sugar levels will be taxed more heavily, while



those with reduced sugar may be subject to a lower rate.

The initiative aligns with the UAE’s long-term strategy to promote better dietary habits and curb the rise of lifestyle-related diseases such as diabetes and obesity. By financially incentivizing healthier options, authorities hope to nudge both consumers and manufacturers toward more health-conscious choices.

“The revised framework reinforces our commitment to public health and sustainable well-being,” the Ministry said in a statement. “We’re leveraging fiscal policy to support long-term national health goals.”