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UAE New Tax on drinks that contain sugar – JM FOODS Position

As 2026 begins, the UAE is introducing a tiered sugar tax on sweetened beverages, signaling a shift toward healthier consumption and greater transparency. For food and beverage brands, this change brings both challenge and opportunity.

JM FOODS is proactively adapting by working closely with suppliers and production partners to innovate, reformulate, and deliver products that meet evolving consumer and regulatory demands.

Key sugar tax highlights (effective Jan 2026):

  • ≥ 8g sugar / 100ml: AED 1.09 per litre
  • 5–<8g sugar / 100ml: AED 0.79 per litre
  • <5g sugar / 100ml: 0 excise tax
  • Artificial sweetener only: 0 excise tax

Products without verified lab certification default to the highest tax bracket, making early testing and documentation essential.

JM FOODS is responding with a three-pronged strategy:

  1. Reformulation with purpose: Lower-sugar and alternative-sweetener options that retain taste and performance.
  2. Compliance-first mindset: Accredited lab testing and accurate certification to avoid unnecessary costs.
  3. Market-led innovation: Meeting rising demand from health-conscious consumers and Horeca operators for lower-sugar, value-driven products.

Health-driven regulations are not a short-term trend. Similar sugar-linked frameworks are emerging across the GCC, making today’s adaptations tomorrow’s competitive advantage.

JM FOODS remains committed to supporting partners through regulatory transitions, investing in healthier product development, and building resilient supply chains to respond effectively to evolving market and policy shifts.

Together, we’re turning regulatory change into opportunity, creating smarter, healthier products for the UAE and beyond.

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