Latest news with #Federal Tax Authority
Gulf Business
4 days ago
- Business
- Gulf Business
UAE tightens tax rules on sugary drinks: What you need to know
The Ministry of Finance and the Federal Tax Authority (FTA) in UAE have announced a major revision to the excise tax structure applied to sugar-sweetened beverages (SSBs), introducing a new tiered volumetric model that links the tax per litre to the beverage's sugar content. Read- Under the updated mechanism, the higher the sugar content per 100ml, the higher the tax rate applied per litre. This marks a departure from the current flat-rate model, which taxes all SSBs equally regardless of sugar levels, Part of broader health and sustainability strategy The move aligns with the UAE's broader public health strategy aimed at reducing sugar consumption, encouraging healthier lifestyles, and incentivising manufacturers to lower sugar content in their products. The revised tax model is expected to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. Authorities say the early announcement is intended to give suppliers, importers, and other stakeholders sufficient time to prepare. Businesses are advised to begin updating internal systems, reviewing product formulations, and ensuring their tax records are aligned with the new framework. According to the Ministry of Finance, the enhanced model reflects the UAE's commitment to using innovative financial and legislative tools to support national health goals. Unlike the previous classification-based approach, the new system directly links the tax burden to sugar content, thereby tying fiscal measures to health outcomes. 'The updated mechanism encourages manufacturers to reduce added sugars and empowers consumers to make more informed dietary choices,' the Ministry said in a statement. The policy also contributes to broader regional efforts to harmonise tax systems across the Gulf and supports the use of taxation as a lever for sustainable development. Implementation set for 2026 with industry support measures To ensure a smooth rollout, the Ministry of Finance, in cooperation with the Federal Tax Authority and other relevant entities, will launch public awareness campaigns in the coming months. These efforts aim to educate stakeholders and ensure full compliance across the business sector ahead of the 2026 implementation. The system has been developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national public health priorities and measurable improvements in dietary behaviour. Further details, including specific tax rates and implementation guidelines, will be released in due course to support businesses during the transition period.
Zawya
4 days ago
- Business
- Zawya
UAE: MoF, FTA announce amendment to excise tax on sugar sweetened beverages
The Ministry of Finance and the Federal Tax Authority (FTA) have announced an amendment to the excise tax mechanism applied to sugar sweetened beverages (SSB's), introducing a tiered volumetric model that links the tax value on each litre of a sugar sweetened beverage to its sugar content per 100ml. The higher the sugar content per 100ml, the higher the tax per litre, marking a shift from the flat rate currently applied to these beverages. This amendment is part of the UAE's broader efforts to promote public health, reduce the consumption of high-sugar products, and encourage manufacturers to lower sugar levels in their beverages. The announcement follows a proactive approach aimed at providing suppliers, importers, and stakeholders sufficient time to prepare for the upcoming changes. This includes updating internal systems, reviewing product formulations, and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model. The updated mechanism is scheduled to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. The Ministry of Finance stated that this enhanced model reflects the UAE's commitment to adopting flexible financial and legislative tools that promote healthy lifestyles. Unlike the previous model, which was based on product classification, the new system ties the tax rate directly to the level of sugar content, and by extension, to the associated health impact. This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices. This direction also supports efforts to strengthen Gulf-wide tax policy integration and reinforces the use of taxation as a strategic tool to advance sustainable development goals. The Ministry confirmed that comprehensive awareness campaigns will be launched—jointly with the Federal Tax Authority and relevant health and regulatory entities—to ensure a smooth transition and full readiness across the business ecosystem once the legislative tool is in place. Notably, the system was developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national health objectives and to deliver measurable improvements in dietary consumption patterns. Businesses across the UAE will be granted sufficient time to prepare for the implementation of the new mechanism. Additional details will be announced in the coming period to support businesses in achieving full compliance with the updated policy.
Zawya
4 days ago
- Business
- Zawya
Ministry of Finance and Federal Tax Authority announce amendment to excise tax on sugar sweetened beverages through introduction of a tiered volumetric model
UAE, The Ministry of Finance and the Federal Tax Authority (FTA) have announced an amendment to the excise tax mechanism applied to sugar sweetened beverages (SSB's), introducing a tiered volumetric model that links the tax value on each litre of a sugar sweetened beverage to its sugar content per 100ml. The higher the sugar content per 100ml, the higher the tax per litre, marking a shift from the flat rate currently applied to these beverages. This amendment is part of the UAE's broader efforts to promote public health, reduce the consumption of high-sugar products, and encourage manufacturers to lower sugar levels in their beverages. The announcement follows a proactive approach aimed at providing suppliers, importers, and stakeholders sufficient time to prepare for the upcoming changes. This includes updating internal systems, reviewing product formulations, and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model. The updated mechanism is scheduled to take effect at the beginning of 2026, pending the issuance of the relevant implementing legislation. The Ministry of Finance stated that this enhanced model reflects the UAE's commitment to adopting flexible financial and legislative tools that promote healthy lifestyles. Unlike the previous model, which was based on product classification, the new system ties the tax rate directly to the level of sugar content, and by extension, to the associated health impact. This approach incentivises manufacturers to reduce sugar levels and empowers consumers to make more informed dietary choices. This direction also supports efforts to strengthen Gulf-wide tax policy integration and reinforces the use of taxation as a strategic tool to advance sustainable development goals. The Ministry confirmed that comprehensive awareness campaigns will be launched—jointly with the Federal Tax Authority and relevant health and regulatory entities—to ensure a smooth transition and full readiness across the business ecosystem once the legislative tool is in place. Notably, the system was developed in close coordination with the Ministry of Health and Prevention to ensure alignment with national health objectives and to deliver measurable improvements in dietary consumption patterns. Businesses across the UAE will be granted sufficient time to prepare for the implementation of the new mechanism. Additional details will be announced in the coming period to support businesses in achieving full compliance with the updated policy.
