From January 2026, a tiered system of taxation on sugary drinks will be introduced in line with wider GCC regulations

The UAE is set to get a new sugar tax on drinks in January 2026, as per the country’s Ministry of Finance.

Per Gulf News, from January 2026, the existing excise tax rules for sugary drinks will be updated, with a new tiered system will be introduced that is dependent on the sugar content of drinks. The move sees the UAE align with a GCC-wide standard, replacing the current 50% flat tax on sugary drinks.

“The UAE Ministry of Finance has announced the completion of a set of proposed legislative amendments to embed the updated excise tax policy into the national legislation,” a statement read on Monday. “This step is in line with the GCC’s adoption of a tiered volumetric model for excise tax on sugar-sweetened beverages (SSBs). The amendments aim to establish a comprehensive legal and regulatory foundation that ensures the smooth implementation of the updated policy at the national level, with effect from January 1, 2026.”

What changes?

Effectively, the higher the sugar content of a drink, the higher the tax. Those with less sugar in them will be taxed at lower rates.

It’s hoped that this method will encourage the creators behind these drinks to reduce the sugar content and provide more health-conscious alternatives to consumers.

As well as unifying the UAE with its GCC neighbours through a tiered approach, it’s also part of the government’s wider strategy to improve public health.

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