It seems that the UAE government is now taking decisive action to fight against obesity, diabetes, and chronic diseases with its UAE sugar tax 2026 initiative.
The news of the UAE Federal Tax Authority (FTA) introducing “Sugar Tax on Beverages” has resurfaced on the internet lately. It states that the UAE government is planning to regulate sugar usage across the country with its new selective tax system on sugar-sweetened beverages (SSBs).
The UAE government plans to bring in this rule in early 2026. Many see it as a bold move to encourage healthier choices. Currently, all the sugar-sweetened beverages will pay 50% flat excise tax, regardless of the amount of sugar it contains.
But, as the laws get imposed in 2026 — the flat rate of 50% will be gone. Instead, the tax will be volumetric or tiered, based on the content of sugar per 100 ml. In short, this law will impose more tax on sugary beverages if they contain more sugar.
The UAE government has made this decision in a joint manner with the Ministry of Finance and Federal Tax Authority. And, the main purpose of this decision is to align the tax policy with better health outcomes.
View this post on Instagram
The Impact Of UAE Sugar Tax on Beverages
The government first announced the decision in July 2025. It then gave stakeholders, including producers, retailers and importers, time to adapt to the new rules. The whole point of this regulation is to enforce manufacturers to modify the formulation of the products and encourage healthy eating habits amongst the consumer.
There are plans to hold awareness campaigns which will help the consumers across the country and the industry as well to not get blindsided.
Why Is This Regulation Important?
There has been a hike in the consumption of sugary drinks across the world, particularly in the United States and the Gulf countries.
According to sources, the sugar consumption per capita in 2021 has been 12.8 kg. But, the older reports suggested that the per capita consumption was over 200 kgs per year.
Recent trends show there is still demand for sugar and sugar-sweetened drinks. Population growth and a possible shift away from artificial sweeteners both play a part.
Renowned health experts and nutritionists in Dubai have hailed this decision, calling it not just “a policy about taxes — but a strategic public health reform.”
Sugary drinks are one of the leading causes behind obesity, type 2 diabetes, heart diseases, kidney stones, stroke, fatty liver disease, and tooth decay.
Consumers who drink these low-nutrient beverages may suffer from excessive weight gain as these beverages are essentially empty calories. It also spikes the sugar levels, which if is sudden, can lead to severe health issues.
Hopefully, this new regulation will educate people and help them make healthier choices. The main aim is to make the high-sugar drinks pricier and lower the price of healthier foods and beverages.
Also read: UAE Sets New Limits On Salt, Sugar & Fat In Everyday Foods With Fines Up To AED 500,000
FAQs
When will the new UAE sugar tax apply?
The UAE plans to bring in the new system in early 2026. The decision was first announced in July 2025.
How are sugary drinks taxed in the UAE at the moment?
According to the article, sugar-sweetened beverages currently pay a flat 50% excise tax, whatever their sugar content.
How will the new sugar tax be calculated?
The flat 50% rate will be replaced by a tiered, volumetric tax based on sugar content per 100 ml. Drinks with more sugar will be taxed more.
Who decided on the UAE sugar tax change?
The decision was made jointly with the Ministry of Finance and the Federal Tax Authority.
Why is the UAE changing the sugar tax?
The aim is to tackle obesity, diabetes and chronic disease, and to push manufacturers to reformulate products and consumers towards healthier choices.
