UAE Moves Towards 50 Percent Soda Tax and 100 Percent Levy for Energy Drinks


25 May 2017 --- The UAE is introducing new fiscal measures to tax carbonated drinks by 50% and a 100% tax hike on energy drinks. 

The levy will be applied to the retail price of the drinks and comes into force during the fourth quarter of 2017, according to the Ministry of Finance.
The UAE is imposing the taxes as part of a package of measures which will also see tax introduced on tobacco products. 
The tax on high-sugar products is a different strategy for UAE which has historically avoided taxing the sale of products directly. 
It comes as more and more countries around the world introduce tax on sugary and fizzy drinks. 
And this is a more aggressive strategy for tackling high-sugar products in the same vein as Mexico’s $0.05 per liter tax on sugary soft drinks, approved in 2013.
Last October, the World Health Organization (WHO) also urged all countries to consider introducing such levies as an effective way of curbing the rising obesity rates, particularly for children. 
The UAE tax could bring in around US$200 million in a year, estimates suggest. 
Taxes will be payable on a monthly basis and businesses should not stockpile, say UAE government officials. 
Countries like Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman have high smoking levels as well as high rates of obesity and the associated health problems. The government is looking to stem the rising numbers, claiming the tax will incentivize consumers to switch to a healthier lifestyle. 

Related Articles

Business News

Ornua reports “record” €2.1bn revenues, boosted by Kerrygold

23 Mar 2018 --- Irish dairy exporter Ornua has published record revenues of €2.1 billion for 2017, reporting a bumper year of double-digit growth for Kerrygold in Germany and US. This marks the first year of Ornua’s new five-year growth plan, Ornua 2021, which positions the business as a leading global dairy organization, funded by 33 dairy co-ops, which delivers results for its customers, consumers and stakeholders.

Food Ingredients News

Nestlé launches Lindahls Kvarg in the UK

23 Mar 2018 --- Sweden’s no. 1 quark product, Nestlé Lindahls Kvarg range, is launching in supermarkets in the UK this month. High protein yogurt and quark have become increasingly popular for the health-minded consumer, with sales increasing 22 percent (Year on Year), and nearly half of 18-34-year olds in the UK adopting a healthier diet.

Business News

Tate & Lyle doubles the size of food application lab in Shanghai

22 Mar 2018 --- Tate & Lyle has doubled the size of its food application laboratory in Shanghai, China and added new customer-facing facilities to help manufacturers meet growing consumer demand for good tasting, healthier food and beverages.

Food Ingredients News

Beverage innovation: “Lighter enjoyment,” botanicals and cold brew NPD

20 Mar 2018 --- Current innovation across the beverage category is centered around health and wellbeing, as sugar reformulation and the broader idea of “lighter enjoyment” continues to dominate new product development. Globally, producers are tapping into the growing consumer demand for enjoyable soft and alcoholic drinks that have been given a clean and clear label makeover as innovators continue to dump sugar and reformulate with more natural alternatives.

Food Ingredients News

Brexit: Health advocates fear future transatlantic trade deal could undermine efforts

20 Mar 2018 --- The alliance for better food and farming, Sustain, is demanding that clear mandates with health priorities are set for any trade talks between Britain and the US amid concerns that new deals will undermine the UK’s efforts to reduce sugar consumption and import “American levels of diet-related diseases” alongside their produce.

More Articles