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A New Sugar Tax Will Be Implemented In The UAE
We all know the feeling. It’s 3PM, the slump hits, and suddenly that fizzy drink or iced tea feels like a lifeline. You crack open a can, sip your sugary drink, and feel instantly revived (or so you think). But while your taste buds might be cheering, your body, and now your wallet, might soon be feeling a little different.
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Starting in 2026, the UAE is saying “no thanks” to too much sugar with a brand-new tiered excise tax system on sugary drinks
This one’s more calculated than your post-gym calorie count.
The Ministry of Finance is rolling out the new model in coordination with the Federal Tax Authority and the Ministry of Health and Prevention. They’ve also confirmed that businesses will be given plenty of time to prepare, with awareness campaigns and support to ease the transition. Right now, there’s a flat excise tax across all sugar-sweetened beverages, whether it’s a just-a-little-sweet juice or a sugar-loaded soda. But come 2026, that’s going out the window. The new tax system will be based on how much sugar is actually in your drink, measured per 100ml.
The more sugar in the drink, the more tax it’ll carry
This isn’t just about bumping prices on your favourite soda for fun; there’s a bigger picture at play.
The move is part of a broader UAE-wide push to encourage healthier lifestyles, reduce sugar consumption, and (hopefully) nudge manufacturers to lighten up on the sweet stuff. Because let’s face it: a lot of “fruit” drinks have barely seen a fruit in their life. By tying tax rates directly to sugar content, the system gives both consumers and brands a little wake-up call.
And hey, this doesn’t mean fun is cancelled. It just means we’re all being nudged, gently, towards healthier choices. Your future self (and your dentist) will probably thank you.
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