3d render of growing taxation concept
The UAE Ministry of Finance announced on Monday that it has finalized a series of proposed legislative amendments, including the introduction of a tiered volumetric tax model for sweetened beverages based on their sugar content or level of added sweeteners.
The ministry confirmed that the revised excise tax framework will take effect nationwide on January 1, 2026.
Under the new regulations, a clear mechanism will be introduced to allow taxable entities—such as importers and producers of sweetened beverages subject to the current 50% excise tax—to deduct a portion of previously paid taxes if their tax liability decreases as a result of the updated rules, provided the goods have not yet been sold.
According to the Ministry, this reform aligns with the Gulf Cooperation Council (GCC) decision to implement a tiered excise tax model for sugar-sweetened beverages (SSBs) across member states.
The amendments aim to establish a robust legal and regulatory framework that supports the efficient application of the updated policy across the UAE, ensuring a smooth transition once it comes into effect in early 2026.
The ministry added that these changes are designed to promote a fair and competitive tax environment, while encouraging healthier consumption choices and aligning national policy with regional standards.