Tax Authority Begins Flavored Drink Tax
The General Authority of Taxes has announced the commencement of a new mechanism for excise tax on sweetened beverages, starting from July 6, 2026. This mechanism is based on the amount of sugar and sweetened ingredients in the product. The tax applies to carbonated drinks and juices that contain added sugar, as well as convertible products such as powders and extracts. Holders are required to submit a declaration via the Tax Platform within 90 days from the mentioned date, with the tax to be paid within 30 days if inventories exceed 200,000 liters. The tax could be zero-rated depending on the sugar content. This measure aims to reduce the consumption of high-sugar products and promote the reduction of sugar levels in the industry.
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