"Finance": Legislative amendments to support the application of the modified policy of selective tax on desalinated drinks
Abu Dhabi, October 6 / WAM / The Ministry of Finance announced the completion of the preparation of a package of legislative amendments necessary to include the amended policy of selective tax within national legislation, in line with the adoption of the Gulf Cooperation Council countries to implement the gradual volumetric model to impose selective tax on desalinated drinks.
These amendments aim to provide an integrated regulatory framework that guarantees the smooth implementation of the modified policy at the national level, and is expected to start in force from January 1, 2026.
The amendments come within the framework of the Ministry’s continuous efforts to develop the legislative system in order to enhance the efficiency of the tax system and ensure its compatibility with the best global practices and unified Gulf trends.
The Ministry stressed that the proposed amendments aim to consolidate a competitive tax environment, by setting a legislative framework that enables the implementation of the modified model in an integrated and effective manner, and takes into account any effects that may be produced during the transitional period.
The amendments include the imposition of a selective tax according to a gradual volumetric model based on sugar content or other localities in the local drink, in addition to setting a clear mechanism that allows those subject to tax who imported or produced taxes subject to tax by 50% before the amendments are valid,
The Ministry of Finance confirms that these amendments reflect the UAE’s commitment to updating its legislative system through a flexible and proactive approach that supports economic stability, enhances confidence with taxpayers, and contributes to achieving the goals of financial and health sustainability.
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