Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates and Calculation Methods (Sweetened Drinks)

Replaces the flat 50% excise tax on sweetened drinks with a tiered, sugar-content-based rate (AED 0 / 0.79 / 1.09 per litre depending on sugar content per 100ml), requiring MOIAT-accredited lab reports per product, with a transitional over-tax deduction available through 30 June 2026. Issued 27 November 2025; published 12 December 2025.

What firms should do

Yes — beverage producers/importers must obtain lab certification and re-classify products under the tiered rate structure

Regulator: Federal Tax Authority
Type: Cabinet Decision
Status: Enacted
Published: 12 Dec 2025
Takes effect: 1 Jan 2026
Reference: Cabinet Decision No. 197 of 2025 (replaces Cabinet Decision No. 52 of 2019)
Topic: Excise Tax
Impact: High

Read it on the regulator's website

Found automatically on the regulator's website and summarised by AI by Arakan Lexara. Not legal advice; check the official source before relying on it.

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