Tax guides · Excise tax
UAE excise tax guide
UAE excise tax applies to tobacco products, e-smoking devices and liquids, energy drinks and sweetened drinks. Since 1 January 2026, sweetened drinks are taxed per litre according to their sugar content instead of at 50% of the price. This guide sets out the rates and who has to register.
What are the UAE excise tax rates in 2026?
| Item | Figure | Source |
|---|---|---|
| Tobacco products | 100% | Cabinet Decision No. 197 of 2025 |
| E-smoking devices and liquids | 100% | Cabinet Decision No. 197 of 2025 |
| Energy drinks | 100% | Cabinet Decision No. 197 of 2025 |
| Sweetened drinks, 8 g or more sugar or sweeteners per 100 ml | AED 1.09 per litre | Cabinet Decision No. 197 of 2025, from 1 January 2026 |
| Sweetened drinks, 5 g to under 8 g per 100 ml | AED 0.79 per litre | Cabinet Decision No. 197 of 2025 |
| Below 5 g, or artificial sweeteners only | AED 0 | Cabinet Decision No. 197 of 2025 |
| No laboratory report on sugar content | The FTA may apply the highest tier | Cabinet Decision No. 197 of 2025 |
What should excise businesses check?
Who has to register for excise tax?
Importers, producers and stockpilers of excise goods, and warehouse keepers of designated zones, subject to the rules for each activity.
When is excise tax due?
At the tax point: generally on import, on release from production, or on release from a designated zone. Excise is not recoverable like VAT, so it is a real cost to the business that pays it.
How do the 2026 sugar tiers work?
The tax depends on the total sugar and other sweeteners per 100 ml, not on the price. Producers need lab-based evidence of sugar content; without it a product may be taxed at the highest tier.
Affected by the 2026 sugar tiers?
We check your product list against the new tiers and your registration and records.
Last reviewed: 22 October 2026 · Reviewed by Muhammad Imran, ACMA
General information only, not legal or tax advice.
Valorin is an independent advisory firm, not affiliated with the FTA or MoF.