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Doha, Qatar: The General Tax Authority has recently announced the new law on excise tax, introducing new measures targeting sugary drinks and revising how taxes on sweetened beverages are calculated.
The authority stated that the changes aim to curb the consumption of high-sugar products and promote healthier lifestyles.
Below is an explainer on what the new law is and how it will be introduced.
What is the new law about?
The State of Qatar has issued Law No. (2) of 2026, amending certain provisions of Law No. (25) of 2018 on Excise Tax to introduce a new tax mechanism on sweetened drinks.
When will the new tax take effect?
The amended law will come into force on July 6, 2026.
What is the 'tiered volume model'?
It is a system where excise tax is calculated based on the amount of sugar or sweeteners in a drink.
Higher sugar content means a higher tax.
Which products are subject to the tax?
The updated list includes:
- Soft drinks
- Juices with added sugar
- Any beverages containing sugar or sweeteners
It also covers products that can be turned into drinks, such as:
- Concentrates
- Powders
- Extracts
- Other similar products
Why is this tax being introduced?
The measure aims to:
- Reduce consumption of high-sugar products
- Raise public awareness about health risks
- Encourage manufacturers to reduce sugar content in their products
- Improve public health outcomes
Are there any reporting requirements?
Yes. Businesses dealing with excise goods must ensure compliance with the updated law.
Anyone holding excise goods must:
- Submit a tax declaration
- Disclose stock levels at the time the law takes effect
- File through the Dhareeba Tax Portal
How does this align with Qatar’s broader strategy?
The initiative supports Qatar’s goals to:
- Strengthen and enhance the country's tax policy efficiency
- Align with international best practices
- Balance economic considerations with public health objectives
