RIYADH: Saudi Arabia’s Zakat, Tax, and Customs Authority has announced that starting Jan. 1, 2026, the selective tax on sweetened beverages will be calculated based on their total sugar content, replacing the current flat 50 percent rate applied to retail prices.
Under the new regulations, graduated tax brackets will be applied according to the sugar content per 100 milliliters of ready-to-drink beverages.
The rule covers all forms of sweetened beverages, including ready-to-drink drinks, concentrates, powders, gels, and extracts intended for consumption.
ZATCA said the change aims to promote public health and encourage consumers to choose lower-sugar options. By linking taxation to sugar content, the authority expects producers and importers to reduce sugar levels in their products, in line with international best practices.
The reform follows a decision by the Financial and Economic Cooperation Committee of the Gulf Cooperation Council, which recommended adopting a volumetric, sugar-content-based excise tax methodology for sweetened beverages across the region.
The update is part of Saudi Arabia’s broader efforts to encourage healthier consumption patterns and reduce sugar intake among residents.
