Cabinet Decision No. (197) of 2025 on selective items, the tax rates or amounts levied on them, and the process for determining the selective pricing has been released by the Ministry of Finance. In order to apply the “tiered volumetric model” to sweetened beverages, the resolution proposes changes to the excise tax.
Cabinet Resolution No. (52) of 2019 on Excise Goods and their appropriate tax rates, along with its subsequent changes, shall be replaced by the new ruling. In keeping with the most recent modifications to Federal Decree-Law No. (7) of 2025 on Excise Tax, the revision is a part of the UAE’s continuous efforts to advance public health and promote better consumption practices throughout the community.
For sweetened beverages, the resolution establishes a tiered excise tax system where the tax rate is based on the amount of sugar per 100 milliliters. Beverages with 5 grams or more but less than 8 grams of sugar per 100 milliliters will be taxed at Dhs0.79 per liter under the new model, while those with 8 grams or more of sugar per 100 milliliters would be taxed at Dhs1.09 per liter.
The resolution also describes how the Federal Tax Authority classifies products, how they are added to the official price list, and what happens when taxable individuals don’t provide the necessary laboratory tests or supporting documents.
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