UAE tells beverage makers to audit sugar ahead of new tax

NEW SYSTEM LINKS TAX RATES TO HOW MUCH SUGAR A DRINK CONTAINS

- BY JUSTIN VARGHESE

The Federal Tax Authority (FTA) has asked companies that produce, import, or store sweetened drinks to start reviewing the sugar content of their products.

The move pushes businesses to prepare for a new excise tax system that will link tax rates to how much sugar a drink contains.

The new model, called the “Tiered Volumetric Model”, will be introduced in early 2026 once the final legislation is issued. Instead of applying a fixed rate, the tax will vary based on the amount of sugar or sweeteners per 100 millilitres of drink.

Act early

The FTA advised companies to apply for an Accredited Conformity Certificate from the Ministry of Industry and Advanced Technology (MOIAT). This certificate confirms how much sugar or sweetener a product contains, based on a test from an approved laboratory.