As part of the State of Qatar’s ongoing efforts to enhance its tax policies and support public health, Law No. (2) of 2026 has been issued, amending certain provisions of Law No. (25) of 2018 on Excise Tax. The amendment introduces a new mechanism for excise tax on sweetened drinks based on a tiered volume model, where the tax is calculated according to the amount of sugar or sweeteners in the drink or taxable product.

The schedule of excise goods subject to tax has also been updated to include sugar-sweetened drinks such as soft drinks and juices with added sugar. The scope further extends to all products that can be converted into drinks and contain sugar or sweeteners, including concentrates, powders, extracts, and other similar products.

The General Tax Authority stated that the law will come into effect on 6 July 2026, allowing sufficient time for taxpayers and manufacturers to align their operations accordingly. It also emphasized the requirement for anyone holding excise goods to submit tax declarations disclosing stock levels at the time the law takes effect through the Dhareeba Tax Portal.

This initiative reflects the State’s efforts to reduce the consumption of high-sugar products and encourage manufacturers to lower sugar content in their products, contributing to improved public health. It also aligns with the country’s strategic direction to enhance the efficiency of the tax system in line with international best practices, while maintaining a balanced approach between economic and health objectives.