A selective tax on sugar-sweetened beverages (SSBs) will be implemented by the Ministry of Finance (MoF) and the Federal Tax Authority (FTA). Starting early next year, the excise tax on SSBs, which includes carbonated and energy drinks, will be determined by their sugar content instead of their category. This change will replace the current fixed percentage-based rate.
A 50% excise tax is currently applied to all carbonated beverages and powdered or concentrated drink mixes with added sugar or sweeteners in UAE. Meanwhile, energy drinks and all tobacco products are charged at a rate of 100 percent.
