A hidden tax you didn’t know you were paying and it’s showing up at checkout
If your bills feel a little different lately, you’re not imagining it. As of January 1, the UAE’s sugar tax – a hidden tax many didn’t know about – now links prices to sugar content, not just the label. Diet drinks are getting cheaper, sugary ones a bit pricier, and your weekly shop might look very different
From flat fees to sugar-based tax
Since 2017, sweetened drinks in the UAE faced a flat 50% excise tax, no matter the sugar. That changed on January 1, 2026. Now excise duty is calculated per litre based on grams of sugar per 100ml, encouraging healthier choices and reformulation. Energy drinks still pay 100%, while artificially sweetened and low-sugar drinks are mostly exempt.
Also read
UAE 2026: 11 major updates to know
The new sugar bands
- 8g+ per 100ml: Dhs1.09 per litre
- 5–7.99g per 100ml: Dhs0.79 per litre
- Below 5g per 100ml: 0% excise tax
- Artificially sweetened drinks: 0% excise tax
- Energy drinks: 100% excise tax
Price check: What’s going up and down
- 330ml full-sugar cola: excise drops 83 fils to 36 fils
- 1L premium fruit nectar: excise drops from Dhs6 to Dhs1.09
- Diet sodas: tax-free/cheaper than full-sugar alternatives
Expect supermarkets, cafés, and convenience stores to reflect the change gradually as new stock arrives.
Smart swaps
The reform isn’t just about numbers – it shapes your everyday choices. Lower-sugar drinks are now more affordable, sugary drinks cost a bit more, and you’ll see the difference in what ends up in your cart.
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