Ministry of Finance and"Federal Taxes" Advertising an amendment to the selective tax on sweetened drinks
Abu Dhabi, July 18 / WAM / The Ministry of Finance and the Federal Tax Authority announced the amendment of the mechanism of applying the selective tax on sweetened drinks, by moving to what is known as the “gradual volumetric model” that links the value of the tax imposed on each liter of the belling drink with the amount of sugar in every 100 ml.
The higher the sugar content in every 100 ml, the higher the value of the tax on the liter, unlike the unified proportions currently applied to these drinks.
This amendment comes within the framework of the state’s efforts to enhance public health, reduce the consumption of highly sugar products, and motivate manufacturers to reduce sugar levels when producing drinks.
The announcement of this policy comes within a pre -emptive approach that aims to give suppliers, importers and concerned authorities a period of preparation for the next stage.
This includes updating their internal systems, examining the composition of their products, and updating their records with the Federal Tax Authority in line with the requirements of the developed model, until the issuance of the legislation regulating the application mechanism formally, as the updated mechanism is set in the beginning of the year 2026.
The Ministry of Finance emphasized that this developed model reflects the state’s commitment to adopting flexible financial and legislative tools that support healthy lifestyles, by linking the new tax system to the level of health effect associated with the amount of sugar in the product, instead of relying only on its classification.
The ministry explained that this trend comes in the context of supporting Gulf integration in tax policies, and enhancing the use of taxes as an effective tool to achieve sustainable development goals.
She also affirmed that comprehensive awareness campaigns will be launched to support the transformation stage, and to ensure business readiness for the actual application when approved by the legislative tool regulating it, in cooperation with the Federal Taxes and Health and Control Authority.
It is worth noting that this system was developed in cooperation and coordination with the Ministry of Health and Community Protection, to ensure its compatibility with national health goals, and to achieve a positive positive impact on improving the patterns of food consumption.
Works in the country will give enough time to prepare for the application of the updated mechanism, as more details will be announced about the new system during the coming period to support the business in preparing for the application and ensuring its entire compliance with the new policies.
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