The UAE will shift to a tiered excise tax on sugary drinks from 2026, linking tax rates to sugar content per 100ml. Replacing the current flat 50% rate, the move aims to reduce sugar intake, promote healthier choices, and support public health goals. Businesses will be given ample time to adapt, with further implementation details to follow. The shift in taxation policy is a strategic move to align with public health objectives and encourage the production of healthier alternatives in the market. This reform aims to create a sustainable impact on consumer behavior while diversifying government revenue streams away from traditional oil-based sources.
