Saudi Arabia introduces new tiered tax system on sweetened beverages

From January 1, 2026, Saudi Arabia is set to introduce a new tiered tax system on sweetened drinks. The revised methodology for calculating tax for sweetened beverages, which was approved by the GCC’s Financial and Economic Cooperation Council, is part of a wider effort in the region to promote public health and encourage lower sugar consumption.

The new four‑tier excise tax structure is determined by the amount of sugar per 100 milliliters, and is designed to impose higher taxes on sweetened beverages with elevated sugar content. The tiers are: drinks with only artificial sweeteners (no added sugar), low-sugar (less than 5g/100ml), medium-sugar (5–7.99g/100ml), and high-sugar (8g or more/100ml).

The new tax model will replace the current flat-rate approach applicable to all sweetened beverages regardless of their sugar content.