Rules by country / Middle East and Africa / UAE sugar tax 2026
UAE sugar tax 2026: what it costs each drink, and what to do
Since 1 January 2026, sweetened drinks pay AED 0.79 or AED 1.09 a litre by sugar content, and each product needs a lab report. We work out the new cost for every product and how to price for it.
At the rates in force since 1 January 2026. For concentrates, use the drink they make.
A sugar tax review for the UAE
What the new tiers mean 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 | AED 0.36 a can | Pass the saving on |
| Lemonade, 1.5 litres | 5.4g | AED 1.19 a bottle | Cut sugar below 5g |
| Iced tea, 500ml | 7.2g | AED 0.40 a bottle | Keep 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 AED 9,800). Prices are fixed in pounds sterling; amounts in dirhams 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.
UAE sugar tax: the detail
Open only what you need.
- Since
- 1 January 2026 (excise since 2017)
- Tiers
- No tax under 5g of sugar per 100ml, AED 0.79 a litre from 5g to under 8g, and AED 1.09 a litre at 8g or more
- Sweeteners
- Drinks sweetened only with artificial sweeteners pay nothing
- Lab report
- Each product needs a sugar report from an accredited lab
- Concentrates
- Concentrates, powders and syrups are taxed on the drink they make
- Exempt
- Drinks with 75% or more milk
- Energy drinks
- Still 100% of the retail price
- Collected by
- The Federal Tax Authority
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 new UAE sugar tax?
Since 1 January 2026, excise on sweetened drinks is charged per litre by sugar content: nothing under 5g per 100ml, AED 0.79 from 5g to under 8g, and AED 1.09 at 8g or more.
What changed for beverages in January 2026?
The flat 50% excise on sweetened drinks was replaced by the tiered model. Energy drinks still pay 100% of the retail price.
Do I need a lab report for each drink?
Yes. Each product needs a sugar content report from an accredited lab.
Are concentrates and syrups taxed?
Yes, on the drink they make once prepared.
How much does a sugar tax review cost?
A review of up to 10 products has a fixed price from £7,500 (about AED 37,000) 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 AED 86,000). It starts with a free 15-minute call.
Do you work with brands in the UAE?
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.