Ministry of Finance Proposes Legislative Changes to Implement Updated Sugar-Sweetened Beverage Excise Tax Policy

Legislative Alignment with GCC Policy: The UAE Ministry of Finance proposed amendments to integrate the updated sugar-sweetened beverage excise tax policy, aligning national legislation with GCC tiered volumetric excise tax rules from January 1, 2026.

Tiered Volumetric Model Implementation: Amendments introduce a tiered excise tax based on sugar or sweetener content and establish mechanisms for adjusting previously paid 50% excise tax before sales under the new model.

Objectives and Economic Impact: The changes aim to strengthen fiscal stability, support public health goals, enhance taxpayer trust, and create a flexible, competitive tax framework for effective, integrated implementation of the updated excise policy.