UAE Announces Changes To Excise Tax Application On Sweetened Beverages

Introduction

On 18 July 2025, the UAE Ministry of Finance and the Federal Tax Authority jointly announced a forthcoming change to the application method of Excise Tax on sweetened beverages. As per the announcement, "[t]he tax amount will now be based on the sugar content in each product, rather than solely on its category, thereby encouraging manufacturers to reduce sugar levels." This change is expected to take effect at the beginning of 2026.

In this article, we explore the implications of this significant policy shift, examine the current excise tax framework, and outline what lies ahead, along with practical steps businesses can take to prepare for the upcoming changes.