Saudi Arabia Adjustments Sugar Tax Guidelines: Increased Taxes for Excessive-Sugar Drinks in 2026






























Saudi Arabia Adjustments Sugar Tax Guidelines: Increased Taxes for Excessive-Sugar Drinks in 2026 | SAUDI EXPATRIATES
















Posted by : Aahil Shaik
Wednesday, November 26, 2025

Saudi Arabia Adjustments Sugar Tax Guidelines: Increased Taxes for Excessive-Sugar Drinks in 2026

Saudi Arabia’s Minister of Trade and Mineral Sources, Bandar Alkhorayef, introduced that the brand new selective tax coverage on sweetened drinks will formally begin on January 1, 2026.

In an interview with Al-Arabiya, he defined that this challenge was one of many greatest considerations for industrial firms up to now, but it surely has now been absolutely resolved.

Alkhorayef stated the dialogue concerning the sugar tax was a optimistic instance of cooperation between a number of authorities our bodies, together with the Ministry of Finance, the Zakat, Tax and Customs Authority, and the Ministry of Well being. Most Considered: Saudization of 12 jobs in personal sector


He pressured that the objective of the brand new sugar tax coverage is to guard public well being, cut back sugar consumption, and on the identical time enable producers to innovate and create new merchandise.

The adjustments to the tax coverage had been made after all of the concerned events reached a complete settlement. He additionally identified that the complexity of the problem stemmed from the necessity for coordination on the Gulf Cooperation Council (GCC) degree.

Alkhorayef defined that the economic sector in Saudi Arabia—similar to industries world wide—faces ongoing challenges attributable to fixed adjustments and international crises. He stated, “I used to be an industrialist myself, and I do know that the sector’s issues by no means finish. However the Kingdom has proven sturdy dedication to working with the personal sector to unravel these challenges over the previous years.”

Final month, the GCC Monetary and Financial Cooperation Committee permitted a call to vary how the selective tax on sweetened drinks is calculated. The brand new system makes use of a tiered volumetric strategy, which implies the tax will rely upon the quantity of sugar per 100 milliliters of the ready-to-drink beverage. Drinks with extra sugar will fall into increased bands and obtain increased tax charges. This replaces the outdated flat 50% tax on the retail value of sweetened drinks. Suggest: New reforms for expat employees

Sweetened drinks embrace any drink that accommodates added sugar, synthetic sweeteners, or different sweetening substances. This new system covers ready-to-drink drinks, concentrates, powders, gels, extracts, and any product that may be was a beverage.

The aim of the sugar tax is to cut back consumption of sugary drinks and enhance public well being throughout Saudi Arabia and the GCC. The brand new tiered system encourages firms to decrease the sugar content material of their merchandise and helps customers make more healthy selections. It additionally goals to combat well being issues linked to excessive sugar consumption, similar to weight problems, diabetes, and dental points.

Saudi Arabia Changes Sugar Tax Rules Higher Taxes for High-Sugar Drinks in 2026
Saudi Arabia Adjustments Sugar Tax Guidelines Increased Taxes for Excessive-Sugar Drinks in 2026

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