The UAE Ministry of Finance announced on Monday that it has finalized proposed legislative amendments introducing a tiered excise tax model for sweetened beverages, based on their sugar or sweetener content.
The ministry confirmed that the revised policy will take effect nationwide starting January 1, 2026.
Under the new framework, businesses that imported or produced goods previously subject to a 50% excise tax before the amendments—and whose tax liability is reduced due to the new system—will be allowed to reclaim part of the tax already paid, provided the goods have not yet been sold.
According to the ministry, this initiative aligns with a collective GCC decision to implement a volumetric, tier-based model for taxing sugar-sweetened beverages (SSBs).
The amendments are designed to build a clear legal and regulatory structure, ensuring smooth and consistent application of the new excise policy across the country.
The Ministry of Finance emphasized that these changes will help create a more balanced and competitive tax environment while supporting the broader regional effort to promote healthier consumption habits and enhance fiscal policy effectiveness.
Also Read UAE Bans Illegal Crypto Mining, Imposes Heavy Fines
