A tiered beverage tax set to launch in the UAE from January 1 is being hailed by medical and dental professionals as a \u201cgreat\u201d public health initiative that will finally address the \u201croot causes\u201d of the region\u2019s rising health crises. <\/p>\n
The new pricing system<\/a>, which was announced in July by the Ministry of Finance and the Federal Tax Authority, links the tax rate directly to the level of sugar content per 100ml, marking an evolution from the flat-rate tax on soft drinks introduced in 2017.<\/p>\n Under the new pricing strategy, drinks containing between 5 and 8 grams of sugar per 100ml will be taxed at 79 fils (Dh0.79) per litre, while those containing 8g or more of sugar per 100ml will be subject to a tax of Dh1.09 per litre.<\/p>\n Beverages with fewer than 5g of sugar per 100ml, as well as those containing only artificial sweeteners, will be exempt from the new taxation rules.<\/p>\n \u201cThe policy encourages both manufacturers and consumers to choose low-sugar or natural-sugar alternatives,\u201d said Dr Ali Elhouni, a consultant endocrinologist at Medcare Royal Specialty Hospital Al Qusais. <\/p>\n \u201cThis method is more effective than the usual flat tax and this connects financial policy with health results, which is important in a place where obesity and type 2 diabetes rates among young people are increasing.\u201d<\/p>\n Concern over obesity and diabetes<\/b><\/p>\n The UAE obesity rates are forecasted to hit new highs by 2050, according to a Lancet study earlier this year. It showed that overweight and obesity prevalence among males aged 25-plus will increase from 84 per cent in 2021 to 94 per cent in 25 years, among the highest globally. For females, it is expected to rise to 95 per cent.<\/p>\n As for type 2 diabetes, it is estimated that there is nearly a 21 per cent prevalence among the UAE\u2019s population as of 2024, according to the International Diabetes Federation. In the Middle East and North Africa region, it is believed 163 million people will have some form of diabetes by 2050, an increase from 85 million last year.<\/p>\n \u201cCutting back on sugar can significantly improve long-term health,\u201d added Dr Elhouni. \u201cWhenever possible, individuals should opt for natural sugars found in fruits instead of sugary drinks, as the body can digest these sugars more effectively.\u201d<\/p>\n International precedence <\/b><\/p>\n While some may question whether these financial measures will lead to real-world change in the health space, international data suggests they do. <\/p>\n For example, in Ireland, a Sugar-Sweetened Drinks Tax was introduced in 2018, with independent evaluations showing that sugar consumption from carbonated soft drinks fell by 30.2 per cent in retail purchases and 19.8 per cent in food service settings within a year.<\/p>\n Similarly, the UK\u2019s soft drinks industry levy, which also came into effect in 2018, showed a significant drop in the amount of sugar in people\u2019s diets across the UK \u2013 about half in children and by a third in adults after the tax was announced in 2016 \u2013 according to the Journal of Epidemiology and Community Health.<\/p>\n Protecting the next generation<\/b><\/p>\n The medical community is particularly focused on how the tax might wean young people off high-sugar habits in the UAE. \u201cI wish more individuals would see that drinking high-sugar beverages is closely related to obesity and type 2 diabetes,\u201d said Dr Elhouni. \u201cEven slight decreases in the daily consumption of these drinks can lead to significant health improvements.\u201d<\/p>\n Sugars in drinks can be easy to over-consume because they are not as filling as food, he added. \u201cBut they still add calories that can lead to weight gain and metabolic issues. <\/p>\n \u201cThis is why it\u2019s advised to eat whole fruits instead of drinking fruit juice, where it\u2019s easy to add more sugar for better taste.\u201d<\/p>\n Good for your teeth<\/b><\/p>\n It is not just metabolic health disorders, either, as high sugar consumption is also linked to faster dental decay. Dr David Roze, founder of Dubai\u2019s Roze BioHealth and BioDental Clinics, also \u201cstrongly\u201d supports the new sugar tax as it\u2019ll help address the imbalances he frequently sees in the oral microbiome. <\/p>\n \u201cFrom a dental perspective, this policy tackles one of the root causes of disease,\u201d he told The National. \u201cReducing sugar exposure directly lowers rates of cavities, gum disease and tooth loss.\u201d<\/p>\n Dr Roze said he commonly sees early signs of biological imbalances showing up in the mouth, such as aggressive tooth decay at a surprisingly young age, chronic gum inflammation and early bone loss around the teeth. There is often also advanced dental breakdown in patients with undiagnosed or poorly controlled diabetes or pre-diabetes. <\/p>\n \u201cThe underlying pattern is often frequent and hidden sugar exposure not just from soft drinks, but from sweetened coffees, flavoured teas, energy drinks and products marketed as \u2018healthy\u2019,\u201d said Dr Roze. <\/p>\n \u201cWhen sugar is consumed continuously throughout the day, the mouth remains acidic for hours, disrupting the oral microbiome and allowing harmful bacteria to dominate.\u201d<\/p>\n A shifting retail industry<\/b><\/p>\n As obesity rates rise, there has been a move towards healthier lifestyles and decreased sugar consumption across the UAE in recent years, particularly in the retail sector. <\/p>\n The country\u2019s healthy snacks industry is booming, as consumers demand more sugar-free, gluten-free, low-fat, plant-based and organic items. The healthy snacks market is expected to reach a projected revenue of more than $1 billion by 2033, a compound annual growth rate of 7.2 per cent, according to Grand View Research. <\/p>\n As more manufacturers incorporate alternative and natural sweeteners, such as stevia, the UAE\u2019s sugar-free drinks market is also projected to reach $1.2 billion by 2033, with a CAGR of 9.3 per cent from this year, according to Deep Market Insights. <\/p>\n \u201cBy pushing manufacturers to create products with lower sugar content and backing public awareness efforts about healthy eating, we might witness a slow decline in obesity and associated chronic illnesses over time,\u201d said Dr Elhouni. <\/p>\n \u201cThis should be included in a wider health promotion plan that focuses on education, better access to nutritious foods and increased awareness of preventing chronic diseases,\u201d he added.<\/p>\n More coverage from the Future ForumMore from Neighbourhood Watch:McLaren GT specs<\/p>\n Engine:<\/strong> 4-litre twin-turbo V8<\/p>\n Transmission: <\/strong>seven-speed<\/p>\n Power: <\/strong>620bhp<\/p>\n Torque: <\/strong>630Nm<\/p>\n Price: <\/strong>Dh875,000<\/p>\n On sale:<\/strong> now<\/p>\n EA Sports FC 26<\/p>\n Publisher:<\/strong> EA Sports<\/p>\n Consoles:<\/strong> PC, PlayStation 4\/5, Xbox Series X\/S<\/p>\n Rating:<\/strong> 3\/5<\/p>\n ESSENTIALS<\/p>\n The flights<\/strong><\/p>\n Emirates<\/a>\u00a0flies direct from Dubai to\u00a0Rio de Janeiro from Dh7,000 return including taxes. Avianca<\/a>\u00a0fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.\u00a0<\/p>\n The trip<\/strong><\/p>\n From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands<\/a> itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.<\/p>\n Ten tax points to be aware of in 2026 <\/p>\n 1. Domestic VAT refund amendments: request your refund within five years<\/strong><\/p>\n If a business does not apply for the refund on time, they lose their credit.<\/p>\n 2. E-invoicing in the UAE<\/strong><\/p>\n Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.\u00a0<\/p>\n 3. More tax audits<\/strong><\/p>\n Tax authorities are increasingly using data already available across multiple filings to identify audit risks.\u00a0<\/p>\n 4. More beneficial VAT and excise tax penalty regime<\/strong><\/p>\n Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.<\/p>\n 5. Greater emphasis on statutory audit<\/strong><\/p>\n There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.<\/p>\n 6. Further transfer pricing enforcement<\/strong><\/p>\n Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.\u00a0<\/p>\n 7. Limited time periods for audits<\/strong><\/p>\n Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.\u00a0<\/p>\n 8. Pillar 2 implementation\u00a0<\/strong><\/p>\n Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE’s implementation of the OECD\u2019s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.<\/p>\n 9. Reduced compliance obligations for imported goods and services<\/strong><\/p>\n Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.\u00a0<\/p>\n 10. Substance and CbC reporting focus<\/strong><\/p>\n Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups\u2019 global footprints and enabling them to assess whether profits are aligned with real economic activity.\u00a0<\/p>\n Contributed by Thomas Vanhee and Hend Rashwan, Aurifer<\/p>\n You may remember \u2026<\/p>\n Robbie Keane (Atletico de Kolkata)<\/strong> The Irish striker is, along with his former Spurs teammate Dimitar Berbatov, the headline figure in this season\u2019s ISL, having joined defending champions ATK. His grand entrance after arrival from Major League Soccer in the US will be delayed by three games, though, due to a knee injury.<\/p>\n Dimitar Berbatov (Kerala Blasters)<\/strong> Word has it that Rene Meulensteen, the Kerala manager, plans to deploy his Bulgarian star in central midfield. The idea of Berbatov as an all-action, box-to-box midfielder, might jar with Spurs and Manchester United supporters, who more likely recall an always-languid, often-lazy striker.<\/p>\n Wes Brown (Kerala Blasters)<\/strong> Revived his playing career last season to help out at Blackburn Rovers, where he was also a coach. Since then, the 23-cap England centre back, who is now 38, has been reunited with the\u00a0former Manchester United assistant coach Meulensteen, after signing for Kerala.<\/p>\n Andre Bikey (Jamshedpur)<\/strong> The Cameroonian defender is onto the 17th\u00a0club of a career has taken him to Spain, Portugal, Russia, the UK, Greece, and now India. He is still only 32, so there is plenty of time to add to that tally, too. Scored goals against Liverpool and Chelsea during his time with Reading in England.<\/p>\n Emiliano Alfaro (Pune City)<\/strong> The Uruguayan striker has played for Liverpool \u2013 the Montevideo one, rather than the better-known side in England \u2013 and Lazio in Italy. He was prolific for a season at Al Wasl in the Arabian Gulf League in 2012\/13. He returned for one season with Fujairah, whom he left to join Pune.<\/p>\n What drives subscription retailing?<\/p>\n Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate\u00a0myriad products and services.<\/p>\n The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights\u2019 report on recent and predicted trends in the sector.<\/p>\n The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include\u00a0the entertainment, fitness, food, cosmetics, baby care and fashion sectors.<\/p>\n The report says subscription-based services currently constitute \u201ca small trend within e-commerce\u201d. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.<\/p>\n UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.<\/p>\n That\u2019s expected to remain unchanged until 2025, when women will represent a $246.6bn market share,\u00a0owing to increasing numbers of start-ups targeting women.<\/p>\n Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.<\/p>\n Our family matters legal consultant<\/p>\n