Objectives Regulate the application of excise tax on goods that are harmful to public health, such as tobacco products, energy drinks, and sweetened beverages, to reduce consumption and promote a healthier lifestyle. Standardise tax procedures according to the GCC Unified Excise Tax Agreement, contributing to government revenues. Ensure compliance and transparency through clear definitions, exemptions for essential food and medical products, and well-defined calculation mechanisms. Support national health and environmental goals by applying higher taxes to harmful products while facilitating effective implementation through explanatory guides.
Implementation and Scope It will come into effect in January 2026 and targets: Sweetened drinks (including soft drinks sweetened with added sugar and other sweeteners) Definition Sweetened Drink is a product to which a source of sugar, artificial sweeteners or other sweeteners is added and is intended for consumption as a drink. This includes drinks in various forms such as ready to drink, concentrates, powders, gels, extracts, or any form that can be converted into a drink.
Calculating excise tax Excise tax on sweetened drinks is calculated based on the total sugar content and other sweeteners rather than as a fixed percentage. Category Total sugar content for every 100ml High sugar ≥8g of total sugar Moderate sugar ≥5g and <8g of sugar Low sugar <5g of sugar Sweetened drinks containing only artificial sweeteners (aspartame, sucralose, saccharin, stevia) The content of artificial sweeteners is not taken into account
Determining sugar and sweetener content Drinks containing added sugar or other sweeteners (e.g. honey): Total sugar content = (natural sugar + added sugar + other sweeteners) Drinks containing only natural sugar (no added sugar or sweeteners): If derived from 100% natural fruit or vegetable juices without added sugar or sweeteners, it is not considered a sweetened beverage for excise tax purposes.
Authority requirements Lab testing by the Ministry of Industry and Advanced Technology for sugar content according to the Tiered-Volumetric Model. Product registration or update in the FTA’s records following the procedures outlined in the guide.
Exceptions Energy drinks (subject to 100% tax on retail price) 100% natural fruit and vegetable juices with no added sugar or other sweeteners Milk, dairy products, and related items Baby formula, follow-up formula, or baby food Beverages and concentrates for special dietary and medical use Beverages or concentrates with added sugar or sweeteners prepared by individuals for personal or non-commercial use Beverages prepared in restaurants and similar establishments, served in open containers not hermetically sealed, intended for direct consumption