Rules by country / Middle East and Africa / Saudi Arabia sugar tax 2026
Saudi Arabia sugar tax 2026: what it costs each drink, and what to do
Since 1 January 2026, sweetened drinks pay SAR 0.79 or SAR 1.09 a litre by sugar content, instead of 50% of the price. We work out the new cost for every product and how to price for it.
At the rates in force since 1 January 2026.
A sugar tax review for Saudi Arabia
What the new tax means for each product's price and margin, and the most profitable move, product by product.
- The tax on every product, before and after the January 2026 change
- Pass the change on, keep the margin, or cut sugar: the most profitable choice for each product
- How shoppers switch between your products as price gaps move
- A price plan for each retailer, and an Excel model to test other prices
How your results look
| Product | Sugar per 100ml | Tax since 2026 | Our advice |
|---|---|---|---|
| Cola, 330ml can | 10.6g | SAR 0.36 a can | Keep the price |
| Lemonade, 1.5 litres | 5.4g | SAR 1.19 a bottle | Cut sugar below 5g |
| Juice drink, 250ml | 4.2g | No tax | Cut the price |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
Sugar tax review
- The tax and best choice for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the tax
- Everything in the tax review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about SAR 10,000). Prices are fixed in pounds sterling; amounts in Saudi riyals are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
The tax on every product, the best move and a price plan, walked through with your team.
Saudi Arabia sugar tax: the detail
Open only what you need.
- Since
- 1 January 2026
- Bands
- No tax under 5g of sugar per 100ml, SAR 0.79 a litre from 5g to under 8g, and SAR 1.09 a litre at 8g or more
- Sweeteners
- Drinks sweetened only with artificial sweeteners pay nothing
- In scope
- Ready-to-drink sweetened drinks, concentrates and powders
- Energy drinks
- Taxed separately
- Replaced
- The flat 50% excise on sweetened drinks
- Collected by
- The Zakat, Tax and Customs Authority (ZATCA)
Pass the saving on
Cut the price to win volume. Works when your shoppers react strongly to price.
Keep the margin
Hold the price and keep the difference. Works for products whose sales hold up.
Cut sugar
Reformulate below 5g to pay nothing, or below 8g for the lower rate.
What is the sugar tax in Saudi Arabia?
Since 1 January 2026, an excise of SAR 0.79 a litre on drinks with 5g to under 8g of sugar per 100ml, and SAR 1.09 at 8g or more. Drinks under 5g, and drinks sweetened only with artificial sweeteners, pay nothing.
What changed in the Saudi sugar tax reform?
On 1 January 2026 the flat 50% excise on sweetened drinks was replaced by a tax per litre based on sugar content.
How much is the sugar tax on a can in Saudi Arabia?
About SAR 0.36 on a 330ml can with 8g of sugar or more per 100ml.
Are diet drinks taxed in Saudi Arabia?
Drinks sweetened only with artificial sweeteners pay no sugar tax under the new bands.
How much does a sugar tax review cost?
A review of up to 10 products has a fixed price from £7,500 (about SAR 38,000) and takes about three weeks. For 11 to 50 products, a full pricing review with the sugar tax built in costs around £17,500 (about SAR 88,000). It starts with a free 15-minute call.
Do you work with brands in Saudi Arabia?
Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
Checked on 20 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.