A tiered beverage tax set to launch in the UAE from January 1 is being hailed by medical and dental professionals as a “great” public health initiative that will finally address the “root causes” of the region’s rising health crises.
The new pricing system, which was announced in July by the Ministry of Finance and the Federal Tax Authority, links the tax rate directly to the level of sugar content per 100ml, marking an evolution from the flat-rate tax on soft drinks introduced in 2017.
Under the new pricing strategy, drinks containing between 5 and 8 grams of sugar per 100ml will be taxed at 79 fils (Dh0.79) per litre, while those containing 8g or more of sugar per 100ml will be subject to a tax of Dh1.09 per litre.
Beverages with fewer than 5g of sugar per 100ml, as well as those containing only artificial sweeteners, will be exempt from the new taxation rules.
“The policy encourages both manufacturers and consumers to choose low-sugar or natural-sugar alternatives,” said Dr Ali Elhouni, a consultant endo
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