In a landmark move aimed at making food in the country healthier, the Ministry of Finance and the Federal Tax Authority announced a change in how taxes will be applied to sweetened drinks.
On Friday, July 18, the authority said that from 2026, the tax applied on sweetened beverages will be based on their sugar content, rather than their product category — which is a 50 per cent excise, according to the Khaleej Times.
The announcement has been made well in advance to give manufacturers time to review their product formulations and implement necessary changes.
In turn, the policy could help make healthier beverages more accessible to residents by incentivising a reduction in sugar content.
The authority added that it will hold awareness campaigns to ensure that stakeholders can understand this new mechanism.
The UAE has consistently encouraged healthy eating habits among residents, with Abu Dhabi recently announcing a ban on junk food in schools.
Earlier this year, Abu Dhabi’s Department of Education and Knowledge released a policy outlining clear guidelines for providing sustainable and health-conscious food options.