Qatar implements new tiered excise tax on sweetened drinks

Doha [Qatar], July 7: The General Tax Authority (GTA) has announced the implementation of a new excise tax mechanism on Sweetened Drinks, effective 6 July 2026, based on a Tiered Volumetric Model under which the applicable tax is calculated according to the amount of sugar or added sweeteners contained in taxable beverages and products.
The new mechanism is introduced pursuant to Law No. (2) of 2026, amending certain provisions of the Excise Tax Law, including the schedule of excise goods subject to tax. The amendments expand the scope of taxable goods to include Sugar-Sweetened Drinks, such as soft drinks and juices containing added sugar, as well as products that can be converted into beverages and contain sugar or added sweeteners, including concentrates, powders, extracts, and other similar products.
The Authority emphasized that all people holding excise goods are required to submit a Transitional Declaration through the Dhareeba platform to declare their taxable inventory. Where the total inventory is less than 200,000 litres, taxpayers are required to submit the declaration only, with no Excise Tax payable. Where the total inventory is 200,000 litres or more, taxpayers must submit an audited inventory report confirming the quantity of stock held and pay any applicable Excise Tax.
The GTA further clarified that the amount of Excise Tax payable is not determined solely by the volume of inventory, but by the sugar or added sweetener content of the beverages.
Accordingly, the tax payable may be zero, even where the inventory exceeds the threshold, if all products fall within non-taxable categories.
Excise Tax is payable only on beverages containing medium or high levels of added sugar.
The Authority urges taxpayers to submit their tax return through the Dhareeba platform within 90 days from 6 July 2026, and to pay any tax due within 30 days from the date of filing the return.
The Authority also clarified that the Excise Tax applies only to packaged products and does not apply to beverages prepared for immediate consumption and supplied to final consumers without sealed packaging.
This initiative forms part of the State's broader efforts to reduce the consumption of high-sugar products and encourage manufacturers to reduce the sugar content of their products, contributing to improved public health and enhancing quality of life.
Source: Qatar Tribune