Rules by country / Middle East and Africa / Saudi Arabia sugar tax 2026

Soft drinksSaudi Arabia

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.

From £7,500 (about SAR 38,000), fixed About 3 weeks for up to 10 products Under NDA from the first day
Free and instant

Check the sugar tax on one drink

What it pays per pack and a year. Nothing you type leaves this page.

g
Checking
Per pack
A year

That's the easy part. Whether to pass a change on, keep the margin or cut sugar depends on how your shoppers react to price. That's what we measure.

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At the rates in force since 1 January 2026.

What you get

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
Example

How your results look

ProductSugar per 100mlTax since 2026Our advice
Cola, 330ml can10.6gSAR 0.36 a canKeep the price
Lemonade, 1.5 litres5.4gSAR 1.19 a bottleCut sugar below 5g
Juice drink, 250ml4.2gNo taxCut 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.

Up to 10 products

Sugar tax review

from £7,500
about SAR 38,000
About 3 weeks
  • The tax and best choice for each product
  • Price plan for each retailer
  • Scenario model and a walk-through
11 to 50 products

Pricing review with the tax

around £17,500
about SAR 88,000
4 to 5 weeks
  • Everything in the tax review
  • Prices and promotions for the whole range
  • How your products take sales from each other
More than 50 products

Portfolio review

Quoted
Scoped on the call
  • 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.

  1. A free 15-minute call

    Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.

  2. Your data

    Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.

  3. 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)
When the tax on a product fell

Pass the saving on

Cut the price to win volume. Works when your shoppers react strongly to price.

When shoppers barely react to price

Keep the margin

Hold the price and keep the difference. Works for products whose sales hold up.

When a small cut gets under a band

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.

  1. KPMG Saudi Arabia, amendments to the excise tax implementing regulations for sweetened beverages

Checked on 20 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.

Sugar tax review|from £7,500 (about SAR 38,000)|about 3 weeks

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