Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026






























Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026 | SAUDI EXPATRIATES
















Posted by : Aahil Shaik
Friday, October 10, 2025

Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026

The Monetary and Financial Cooperation Committee of the Gulf Cooperation Council (GCC) has determined to replace the way in which selective tax is calculated on sweetened drinks. The brand new tax system will begin in Saudi Arabia on January 1, 2026.

Below the brand new tiered volumetric system, the tax fee will depend upon how a lot sugar is within the drink. The quantity of tax might be primarily based on particular sugar-level ranges per 100 milliliters of ready-to-drink drinks. This new mannequin replaces the present flat-rate system, which now expenses a hard and fast 50% tax on the retail worth of all sweetened drinks coated by the tax. Learn: Saudi Arabia bans Tobacco outlets close to Mosques and Colleges


To make this transformation occur, the Zakat, Tax and Customs Authority (ZATCA) has posted instructed updates to the foundations for the Excise Items Tax Regulation on the Public Session Platform “Istitlaa.”
These amendments describe how the transition to the brand new sugar-based mannequin will work. The ZATCA Board of Administrators has permitted opening the session, and the general public can ship suggestions and recommendations till October 23.

Sweetened drinks are outlined as any drink containing added sugars, synthetic sweeteners, or different sweetening substances. The excise tax covers all kinds of drinks, together with ready-to-drink merchandise, concentrates, powders, gels, extracts, or every other kinds that may be combined right into a beverage.

The GCC’s choice to alter the calculation technique applies to all member states, with Saudi Arabia implementing it first in 2026, after finishing all legislative and regulatory procedures and publishing full particulars.

ZATCA explains that they’re making this early announcement to permit importers and producers ample time to organize for the change. The authority may even conduct consciousness workshops with pertinent organizations to elucidate the technical features of the brand new system and assure a seamless transition. See Additionally: Saudi Arabia points new checking account guidelines for expats and guests

Saudi Arabia to Introduce New Sugar-Based Tax on Sweetened Beverages from January 2026
Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026

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