Overview

• The Ministry of Finance finalized legislative amendments to embed the updated excise policy in national law for a 2026 rollout.
• The new framework replaces the current flat-rate excise with volumetric tiers that vary by sugar content or other sweeteners.
• Taxable persons may claim a partial deduction of previously paid 50% excise if their liability falls under the new tiers before the goods are sold.
• The move follows the GCC’s adoption of a tiered model and is presented as consistent with global best practices.
• Authorities frame the changes as supporting fiscal stability and public health, with businesses expected to prepare for labeling, pricing, and compliance adjustments.