UAE to implement tiered sugar-based excise tax on sweetened drinks from 2026 

UAE – The UAE Federal Tax Authority (FTA) has urged producers, importers and stockpilers of sugar-sweetened beverages to begin reviewing sugar levels in their products ahead of the rollout of a new excise tax framework starting early 2026. 

The new system, which will be introduced following the issuance of related legislation, will adopt a Tiered Volumetric Model that calculates excise tax per litre based on the sugar content per 100 millilitres.  

According to the FTA, early preparation will assist businesses in ensuring full compliance once the mechanism is enforced. 

Producers and importers will be required to register sweetened beverages as excise goods by submitting certified laboratory analysis reports issued by facilities accredited by the Ministry of Industry and Advanced Technology (MoIAT). These reports must clearly outline sugar and sweetener content for each product.  

The Authority also encouraged stakeholders to obtain UAE Certificates of Conformity from MoIAT, based on accredited laboratory findings from bodies approved by systems such as the Emirates National Accreditation System or other ISO/IEC 17025-certified institutions. 

Under the rules, any sweetened product lacking a valid UAE Certificate of Conformity at the time of enforcement will be automatically classified as a high-sugar beverage until official laboratory verification is completed. Comprehensive guidance on the tiered volumetric model and related procedures is available on the FTA website under the excise tax section. 

A Public Clarification issued in September detailed the four-tier system for sweetened drinks: beverages containing 8 grams or more of sugar per 100 millilitres will fall under the high-sugar category, drinks with 5 to less than 8 grams per 100 millilitres will be classified as moderate-sugar, and products with less than 5 grams per 100 millilitres will be considered low-sugar.  

Beverages containing only artificial sweeteners will fall under a zero-percent tax category. 

The FTA noted that the excise tax will apply to total sugar content, including natural, added and artificial sweeteners. Under the amended structure, carbonated drinks will no longer be treated as a separate tax category; instead, taxation will depend solely on sugar levels. Energy drinks, however, will continue to be taxed at the existing 100 percent rate. 

The Authority reaffirmed its commitment to providing businesses sufficient time to adjust by reviewing formulations, updating registrations and preparing internal systems ahead of implementation.  

The introduction of the model forms part of the UAE’s broader national strategy to limit sugar intake, support healthier consumer choices and align excise practices with regional standards. 

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