Qatar Introduces Tiered Excise Tax on Sweetened Drinks from July 6

The General Tax Authority (GTA) announced the implementation of a new Excise Tax mechanism on sweetened drinks from July 6 under a Tiered Volumetric Model, with tax calculated according to the amount of sugar or added sweeteners in taxable beverages and products.

The authority said the mechanism is introduced under Law No. (2) of 2026, which amends provisions of the Excise Tax Law and expands the scope of taxable goods to include sugar-sweetened drinks, such as soft drinks and juices with added sugar, as well as products that can be converted into beverages, including concentrates, powders, and extracts containing sugar or added sweeteners.

The GTA said all holders of excise goods must submit a Transitional Declaration through the Dhareeba platform to declare taxable inventory.

Taxpayers with inventories below 200,000 litres are required to submit the declaration only, with no excise tax payable. Those with inventories of 200,000 litres or more must also submit an audited inventory report and pay any applicable tax.

The authority clarified that excise tax is determined by the sugar or added sweetener content - not inventory volume - and is payable only on beverages with medium or high levels of added sugar.

It also said the tax applies only to packaged products and excludes beverages prepared for immediate consumption and supplied to final consumers without sealed packaging.

Taxpayers must submit their tax return through the Dhareeba platform within 90 days from July 6 and pay any tax due within 30 days of filing.

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.

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