We’ve all been there — it’s 3PM, the afternoon crash kicks in, and suddenly that soda or iced tea feels like a total lifesaver. You pop the tab, take a sweet sip, and boom — instant energy (or so it seems). Your taste buds are vibing, but your body — and your bank account — might not be so thrilled afterward.
Starting in 2026, the UAE is saying “no thanks” to too much sugar with a brand-new tiered excise tax system on sugary drinks
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The Ministry of Finance is teaming up with the Federal Tax Authority and the Ministry of Health and Prevention to launch a revamped system. They’ve reassured businesses that there’ll be plenty of time to gear up, with awareness campaigns and support to make the shift smoother. Right now, all sugar-sweetened drinks — whether it’s a lightly sweet juice or a full-on sugar bomb soda — get hit with the same excise tax. But in 2026, that flat rate is getting scrapped. Instead, the new setup will tax drinks based on their actual sugar content, measured per 100ml.
The more sugar in the drink, the more tax it’ll carry
This isn’t just about hiking up the price of your go-to soda for no reason — there’s a bigger goal behind it.
It’s all part of a nationwide push in the UAE to promote healthier habits, cut down on sugar intake, and (fingers crossed) get brands to chill out with the sweetness. Let’s be real: a lot of those “fruit” drinks are more sugar than actual fruit. By linking tax rates directly to how much sugar’s inside, the new system delivers a wake-up call — for both shoppers and drink makers.
And hey, it’s not like the fun is over — it just means we’re getting a little nudge in the direction of smarter, healthier choices. Your future self (and yeah, definitely your dentist) will be glad you did.
