The new system starts in January 2026
The UAE has launched a tiered excise tax on sweetened drinks, starting January 1, 2026. As a result, consumers will see tax rates vary depending on sugar and sweetener content. This marks a major shift from the previous flat-rate model and signals a stronger push toward healthier choices.
Legal Framework and Health Goals
This initiative falls under Cabinet Decision No. 197 of 2025 and updates Federal Decree-Law No. 7 of 2025 on Excise Tax. Therefore, the Federal Tax Authority (FTA) believes the new system will reduce sugar intake and lower the impact of non-communicable diseases. In addition, it aligns with broader public health strategies.
Registration and Testing Requirements
All producers, importers, and stockpilers must register their products on the EmaraTax platform. Furthermore, they need an Emirates Conformity Certificate to verify sugar and sweetener levels. Accredited labs will handle mandatory testing. Otherwise, products without certification will be treated as high-sugar until proven otherwise.
What Products Are Affected
The tax applies to ready-to-drink beverages, as well as concentrates, powders, gels, and extracts. Meanwhile, products with only natural sugar and no added sweeteners remain exempt. Manufacturers must report sugar content per serving based on preparation instructions. Consequently, failure to do so may cause registration delays.
Updated Categories and Rates
Carbonated drinks are no longer taxed separately. Instead, their rate depends on sugar content. Energy drinks still carry a 100% tax and are excluded from the tiered system. Sweetened drinks fall into three categories:
- High-sugar drinks (8 g+ per ml): taxed at Dhs 1.09/liter
- Moderate-sugar drinks (5–7.9g per 100 ml): taxed at Dhs0.79/litre
- Low-sugar or artificially sweetened drinks (under 5 g per ml): exempt
Encouraging Healthier Choices
The tiered tax encourages manufacturers to lower sugar levels. Consequently, consumers gain healthier options. Moreover, the FTA has launched educational campaigns to inform businesses and the public about the new rules.
A Modern Approach to Public Health
This policy reflects the UAE’s commitment to public well-being. In addition, it streamlines tax compliance through digital tools and AI-driven registration. Ultimately, the sweetened drinks tax combines health goals with smart governance.
