The UAE will implement a new sugar-sweetened beverage (SSB) tax system starting January 1, 2026, the Ministry of Finance (MoF) confirmed. The updated policy introduces a tiered volumetric tax model, aligning with the GCC’s new framework, where tax rates will vary depending on a drink’s sugar or sweetener content.
The MoF announced that it has completed a set of legislative amendments to embed the revised excise tax policy into national law. The goal is to establish a solid legal foundation that ensures smooth implementation of the changes, while also creating a competitive and integrated tax environment.
Under the new system, producers and importers who paid the current flat 50% excise tax on goods before the law takes effect — and whose products will be taxed at a lower rate under the new model — will be allowed to deduct part of the previously paid tax, provided those goods remain unsold.
The ministry stated that these changes reflect the UAE’s proactive approach to financial system reforms. It aims to strengthen economic stability, boost public trust in tax policies, and support long-term public health goals by encouraging reduced sugar consumption.
