Health and Economy
The United Arab Emirates will introduce a sugar tax on sweetened beverages from January 1, 2026, targeting the growing health risks of obesity, diabetes, and cardiovascular diseases. The measure aligns with the GCC’s regional framework for a tiered excise on sugar-sweetened beverages (SSBs).
A sugar tax raises the retail price of sugary drinks to discourage excessive intake and promote healthier choices. Globally, the UK, Mexico, and South Africa have recorded declines in sugary drink consumption after adopting similar measures.
In India, sugary drinks already face one of the highest tax burdens worldwide, with a 28% GST, 40% sin tax, and 12% compensation cess. This reflects both fiscal policy and a public health approach to reducing sugar consumption.
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