UAE’s New Excise Rule Sugar-Based Tax Kicks In 2026

The UAE will shift from a flat excise rate to a tiered volumetric model for sugar-sweetened drinks starting 1 January 2026. The change stems from Cabinet Decision 99 of 2025 and Public Clarification EXTP012.

Key Changes:

• Tax by sugar content: Instead of a fixed 50%, drinks will be taxed based on grams of sugar per 100 mL (high, moderate, low tiers).
• Redefined product scope: Carbonated drinks now taxed under sweetened drinks rules; those with only artificial sweeteners may get 0% rate.

• Lab reporting required: Businesses must submit sugar content reports from FTA-accredited labs

• Transitional rules: Products without lab reports will default to highest sugar tier until proven otherwise.

Conclusion

From 2026, UAE redefines excise: your drink’s sugar level will decide its tax. Prepare now.

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