Yesterday, the Ministry of Finance announced the issuance of Cabinet Resolution No. (197) of 2025 concerning selective goods and the percentages or tax amounts imposed on them, as well as how to calculate the selective price. The resolution includes amendments to the selective tax, aimed at applying the 'graded volumetric model' to sweetened beverages. The new resolution will replace Cabinet Resolution No. (52) of 2019 concerning selective goods and the tax imposed on them, along with its amendments. The Ministry stated in a statement that the amendments concerning the application of the 'graded volumetric model' will come into effect for all taxpayers starting from January 1, 2026. It noted that this amendment comes within the framework of the UAE's efforts to enhance public health and encourage community members to adopt a healthy consumption pattern, in implementation of the latest amendments to Federal Decree-Law No. (7) of 2025 concerning the selective tax. The Ministry added that the amendment aims to clarify the goods subject to the selective tax, and the percentages and tax values applied to them within a unified legislative tool, to facilitate their understanding and adherence by all taxpayers. The amendment includes applying the graded volumetric model to sweetened beverages, whereby the tax is calculated based on the amount of sugar and sweeteners in every 100 ml of the beverage. A tax of 0.79 dirhams per liter will be imposed on sweetened beverages containing 5 grams or more of sugar and other sweeteners per 100 ml, while a tax of 1.09 dirhams per liter will be imposed on sweetened beverages containing 8 grams or more of sugar and other sweeteners per 100 ml. Sweetened beverages containing less than 5 grams of sugar and other sweeteners per 100 ml, or those to which only artificial sweeteners have been added, will be subject to a zero tax.
