Abu Dhabi, July 18 -- The United Arab Emirates (UAE) will implement a new sugar-content-based excise tax on sweetened beverages starting January 2026, the Ministry of Finance and the Federal Tax Authority (FTA) announced on Friday, July 18.

The move is part of a broader strategy to promote healthier consumption habits and reduce sugar intake across the population.

Under the revised model, the tax will no longer be applied at a flat 50 percent rate. Instead, it will be calculated based on the sugar content per 100ml-meaning products with higher sugar levels will be taxed more heavily, while those with reduced sugar may be subject to a lower rate.

Incentivising healthier choices

The initiative aligns with the UAE's long-term strategy to...