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FTA Unveils Tiered Excise Tax Model for Sweetened Drinks Based on Sugar Content from 2026

  • From early 2026, excise tax on sweetened drinks will be based on sugar content per 100 ml using a tiered model.
  • Businesses must register products and provide a MoIAT-accredited lab report, or drinks will be classified as “high-sugar.”
  • Drinks with only natural sugar are exempt; those with only artificial sweeteners are taxed at 0%.
  • Carbonated drinks will be taxed based on sugar content, not as a separate category; energy drinks remain at 100% tax.
  • Sugar content tiers: high (≥8g/100ml), moderate (≥5g and <8g), low (<5g), and a separate class for only artificial sweeteners.

Source: premier-brains.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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