Amending the mechanism of applying the selective tax to desalinated drinks in the Emirates

The Ministry of Finance and the Federal Tax Authority announced the amendment of the mechanism of imposing a selective tax on sweetened drinks, so that the value of the tax is linked to the percentage of sugar content in the product instead of the fixed percentage of the sale price, in a move aimed at promoting public health in the UAE. The application of the new system is scheduled to start in the beginning of 2026.

The amended system aims to encourage manufacturers to reduce sugar in their products, by imposing lower tax rates on low -sugar -sugar content drinks, compared to sugar -rich products. The amendment also includes all sweetened drinks, whether local or imported.

The concerned authorities stated that this amendment comes within the framework of the national efforts to support health options and enhance societal awareness of the importance of reducing sugar consumption, in line with the state’s directions in promoting the quality of life and preventing life -related diseases.

The Ministry of Finance and the Federal Tax Authority confirmed that comprehensive awareness campaigns will be launched during the coming period to facilitate the understanding of the new mechanism and ensure smooth compliance by those concerned, calling on companies and manufacturers to start early preparation for the implementation of the updated system.