Big changes are coming to your favourite soft drinks as the UAE
The UAE is turning up the pressure on sugary drinks, and come 2026, it’s no longer just a flat fizz fee.
The more sugar your soda has, the more it’ll cost to sip. It’s a tax shake-up designed to slim down sugar consumption and stir up healthier choices across the country.
In an effort to promote healthier lifestyles and reduce national sugar consumption, the current flat-rate tax on sugary drinks will be replaced by a variable tax based on the amount of sugar each product contains.
This policy change is a key step in the UAE’s broader public health strategy aimed at combating lifestyle-related diseases such as obesity, diabetes, and heart disease.
By tying the tax rate directly to the sugar content of each beverage, the government hopes to encourage manufacturers to reduce sugar levels in their products and empower consumers to make more informed, healthier choices.
Under the existing system, all sugar-sweetened drinks are taxed at a fixed rate of 50 per cent. Beginning in 2026, however, this one-size-fits-all approach will be replaced with a tiered system.
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Drinks with higher sugar content will face steeper taxes, while beverages with little or no added sugar will see lower tax rates; or potentially none at all.
The exact formula for calculating the new tax rate has yet to be announced, but it is expected to be based on the number of grams of added sugar per 100 milliliters of liquid.
Similar models are already in place in countries like the United Kingdom, Mexico, and South Africa, where sugar-based taxation has led to reformulation efforts by beverage producers and a measurable decline in sugar consumption.
Recent studies have shown that sugar-sweetened beverage taxes can lead to a substantial reduction in sugar consumption and a corresponding drop in obesity rates over time.
As the UAE continues to modernize its healthcare approach, this tax reform represents a proactive measure in curbing the long-term burden of noncommunicable diseases.
As 2026 approaches, more details will be released on how the new system will be implemented, including thresholds, exemptions, and how compliance will be monitored.
In the meantime, consumers and producers alike are being encouraged to prepare for a healthier, more sugar-conscious future.
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