Question 1

What products are subject to excise tax in the UAE?

Accepted Answer

Excise tax applies to tobacco products, electronic smoking devices and liquids, energy drinks, and sweetened beverages. The rate is 100% for tobacco, e-smoking, and energy drinks. Sweetened drinks are taxed based on sugar content per 100ml.

Question 2

How is excise tax calculated for sweetened drinks?

Accepted Answer

From 1 January 2026, sweetened drinks are taxed per litre based on sugar content: less than 5g/100ml is exempt, 5-8g is AED 0.79/litre, and over 8g is AED 1.09/litre (Cabinet Decision No. 197/2025).