UAE Revises Sugar‑Drink Tax Scheme Effective 1 January 2026

The United Arab Emirates government announced a revision of its sugary‑drink tax that will take effect on 1 January 2026. The new rules apply to all ready‑to‑drink beverages containing added sugar.

The revised scheme adopts a tiered volumetric approach, calculating tax on the amount of sugar per 100 ml, replacing the previous flat 50 % levy on retail price. This method aligns with Gulf Cooperation Council agreements aimed at strengthening sugar‑reduction policies.

Higher taxes on drinks with greater sugar content are intended to push manufacturers to lower sugar levels, giving consumers healthier options. Importers can also adjust previously paid taxes if the new rate is lower, supporting the UAE’s broader fiscal modernization effort.