ABU DHABI: The UAE is all prepared to introduce ‘Sugar Tax’ on beverages. The UAE Ministry of Finance announced that it has completed amendments to the law to impose taxes based on the amount of sugar and sweeteners in sweetened beverages. The ministry also stated that the new policy will come into effect from January 1, 2026.

The ministry stated that the new policy is part of the GCC countries’ decision to develop a hierarchical volumetric model for the excise tax on sugar-sweetened beverages (SSB).

The amendments aim to establish a comprehensive and legal foundation that will ensure the smooth implementation of the new policy at the national level. The authorities added that the proposed amendments will “foster a competitive tax environment”.

The new rules will also include a clear mechanism to allow individuals who imported or produced goods subject to 50 per cent excise duty before the amendments to deduct a portion of the tax paid earlier, the authorities said.