Connect with us

Business

UAE to introduce sugar tax on drinks from 2026: Here’s what it means for residents

Published

on

Spread the love

From January 2026, the cost of sugary drinks in the UAE will depend on their sweetness level. The Ministry of Finance and the Federal Tax Authority (FTA) have announced a major change to the country’s excise tax system on sugar-sweetened beverages (SSBs). Instead of the current flat 50% tax rate, a new tiered system will link tax per litre to the drink’s sugar content per 100ml; the more sugar, the higher the tax.

The move aims to curb sugar consumption, promote healthier choices, and encourage manufacturers to reduce sugar levels in their products. The UAE has one of the highest diabetes rates in the region, with over 20% of the adult population affected, according to recent health data.

What’s Changing?

Under the new model:

  • Drinks with lower sugar content will be taxed at a lower rate.
  • High-sugar beverages will face increased excise duties, making them more expensive for consumers.
  • The tax calculation will no longer be based on product type alone, but on its nutritional content.

This approach, officials say, gives consumers clearer information about what they’re drinking while pushing manufacturers toward healthier formulations.

Why It Matters

The policy shift is part of the UAE’s wider strategy to improve public health and reduce the burden of lifestyle diseases like obesity and Type 2 diabetes. It also aligns with Gulf-wide efforts to unify tax frameworks and use fiscal tools to drive better health outcomes.

“This enhanced model encourages manufacturers to reduce added sugars and empowers consumers to make informed dietary choices,” the Ministry of Finance said.

Authorities are giving businesses over a year to prepare for the changes, which will require updates to pricing, packaging, and supply chain systems. Awareness campaigns and more details will follow in the coming months.

How Will It Impact You?

For consumers, this means the price of your favourite soft drink, juice, or energy beverage may vary based on how much sugar it contains. Drinks with less sugar, or no sugar, are likely to become more competitively priced.

For example, if you reach for a full-sugar soda, expect to pay more than you would for a reduced-sugar or sugar-free version of the same brand.

Major producers such as Coca-Cola and PepsiCo are already adapting. In 2023, nearly 30% of Coca-Cola’s drinks sold in the UAE were low or zero-calorie, and 68% contained less than 100 calories per 355ml serving. Companies are now exploring sugar alternatives like stevia to maintain taste while reducing calories.

What’s Next?

The updated sugar tax model will come into effect in early 2026, pending the release of implementing legislation. Until then, businesses, importers, and retailers are being encouraged to prepare, with health authorities working closely with the tax authority to ensure a smooth transition.

While it’s unclear if the new rules will affect alcoholic drinks, the broader message is clear: the sweeter the drink, the higher the price tag, and that’s by design.

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Announcements

Dubai announces Dh1.5 billion package to protect jobs and support businesses

Published

on

Spread the love

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has approved a fresh Dh1.5 billion economic support package aimed at protecting jobs, easing pressure on businesses and strengthening Dubai’s economy during a challenging period for the region.

The latest measures bring the total value of Dubai’s recent economic support initiatives to Dh2.5 billion, following an earlier Dh1 billion package introduced earlier this year.

The new package includes 33 initiatives that will be rolled out over the next three to 12 months, targeting key sectors including tourism, hospitality, trade, education and customs services.

One of the biggest beneficiaries is Dubai’s hotel and tourism industry, with several major fee relief measures announced to reduce operating costs.

Hotels across the emirate will be allowed to postpone 100 per cent of government sales fees on rooms as well as food and beverage services for three months. The relief applies to hotels, hotel apartments and holiday homes.

Dubai has also postponed the Tourism Dirham fee, a charge applied to hotel stays for up to 30 consecutive nights, for the same period. Hotels will additionally be exempt from permit, postponement and cancellation fees related to events.

Retailers and commercial businesses are also expected to benefit, with Dubai removing additional charges linked to sales campaigns and promotional offers. The move is likely to encourage more discounts and shopping promotions across the city over the coming months.

The package further includes streamlined procedures for residency permit issuance and renewals, although detailed implementation guidelines are yet to be announced.

Other sectors receiving support include education, customs, transport and aviation. Measures include deferred licence renewal fees for educational institutions, payment deferrals in the transport sector, an 80 per cent reduction in customs fines and a 50 per cent cut in fees for renewing civil aviation permits.

In a statement shared on X, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said the initiatives reinforce Dubai’s economic resilience and competitiveness while strengthening partnerships between the government and private sector.

He added that Dubai remains committed to supporting businesses and residents while continuing to position itself as a leading global economic hub.

Continue Reading

Business

The new rental reality: Why UAE landlords want to see your credit score

Published

on

Spread the love

The rental process in the UAE is getting a major digital upgrade, with tenant credit checks slowly becoming part of the leasing journey.

For many residents who have rented abroad, sharing a credit score may already feel familiar. But in the UAE, the concept is still new, and importantly, fully based on tenant consent.

How the new system works

The new Tenant Screening solution, launched by Etihad Credit Bureau in collaboration with UAE PASS, allows landlords to request access to a prospective tenant’s credit score.

Here’s the key detail:

  • Tenants receive a request through UAE PASS
  • They can approve or reject access themselves
  • No credit information is shared without consent

The goal is to create a more transparent and efficient rental process while keeping financial data secure.

Why landlords want it

For landlords, the system offers verified financial insights that may help assess payment reliability, especially for:

  • Luxury properties
  • High-value rentals
  • Multiple post-dated cheque agreements

The credit check is designed to complement existing requirements, such as:

  • Salary certificates
  • Emirates ID
  • Visa verification

How to check your UAE credit score

  1. Visit the official AECB platform or download the app
  2. Log in using UAE PASS or register with:
    • Emirates ID
    • Mobile number
    • Email address
  3. Verify your identity using the OTP sent to your phone
  4. Select Credit Score Report
  5. Pay:
    • Dh10.50 for the score only
    • Dh84 for the full credit report (including VAT)
  6. Receive your score instantly in PDF format

Strong credit profile benefits

While some renters may initially see it as another step, supporters say the system could actually make approvals faster and smoother.

In competitive rental markets such as Dubai and Abu Dhabi, a strong credit profile could help tenants stand out and reassure landlords during the application process.

Officials say UAE PASS plays a critical role by acting as the secure gateway for all approvals, ensuring users remain in control of their personal financial information.

The system is currently optional, but experts believe tenant screening could become increasingly common as the UAE rental market continues to modernise.

Continue Reading

Business

New UAE wage law explained: What workers and employers need to know

Published

on

Spread the love

The Ministry of Human Resources and Emiratisation has unveiled strict new rules requiring private sector companies to pay employee salaries on the first day of every month starting June 1, 2026.

The move, introduced under Ministerial Resolution No. 340 of 2026, is part of a wider push to strengthen wage protection and improve labour compliance across the UAE.

Salaries must be paid on time

Under the new regulation:

  • Salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or another authorised payment platform.
  • Any payment made after the due date will officially be considered delayed.

The ministry also stated that companies must provide proof and documentation confirming salary transfers.

What happens if companies delay salaries?

Authorities outlined escalating penalties that become more severe the longer salaries remain unpaid.

From Day 2:

  • Companies enter electronic monitoring
  • Warning notices are issued

From Day 5:

  • Suspension of new work permits may begin
  • Employers are formally notified to clear the unpaid wages

From Day 11:

  • Administrative fines apply for repeat violations
  • Companies may be downgraded to the third business classification category

From Day 16:

  • Labour disputes may be automatically registered for workers
  • More permit restrictions could follow, especially for larger companies and sectors such as:
    • Construction
    • Transport
    • Cleaning
    • Security
    • Recruitment services

From Day 21:

For companies employing 50 or more workers, repeated violations could lead to:

  • Referral to public prosecutors
  • Asset seizure orders
  • Travel bans on company officials

When is a company still considered compliant?

The ministry clarified that businesses remain compliant if they transfer:

  • At least 85% of total wages are on time

Employees also won’t be classified as unpaid if missing amounts are linked to legally documented deductions.

Some sectors exempt

The decision excludes:

  • Short-term permits under three months
  • Fishing boats
  • Citizen-owned taxis
  • Banks
  • Places of worship

The UAE has long pushed for stronger worker protections, but this marks one of the toughest enforcement frameworks yet for salary delays.

Continue Reading

Popular

Exit mobile version
https://headline.ae/