Qatar Implements New Excise Tax on Sweetened Drinks Effective July 6

The General Tax Authority (GTA) has officially implemented a new Excise Tax mechanism targeting sweetened beverages, effective July 6, 2026. The system introduces a Tiered Volumetric Model, under which tax liability is determined by the amount of sugar or added sweeteners contained in taxable products.

The new framework was enacted under Law No. (2) of 2026, which amended key provisions of the Excise Tax Law and expanded the list of taxable goods. The scope now includes not only soft drinks and juices with added sugar but also concentrates, powders, extracts, and other products that can be converted into beverages containing sweeteners.

The GTA has instructed all holders of excise goods to submit a Transitional Declaration via the Dhareeba platform. For inventories below 200,000 litres, only the declaration is required, with no tax payable. For stock exceeding 200,000 litres, taxpayers must provide an audited inventory report and pay any applicable tax.

Officials clarified that the tax is not based solely on volume but on sugar content. Products with low or zero added sugar may be exempt, even if inventories surpass the threshold. Excise Tax applies only to beverages with medium or high levels of added sweeteners.

Taxpayers are required to file returns within 90 days of July 6, 2026, and settle dues within 30 days of filing. The GTA also confirmed that the tax applies exclusively to packaged products and does not extend to beverages prepared for immediate consumption without sealed packaging.

This initiative is part of Qatar’s broader public health strategy to reduce sugar consumption, encourage manufacturers to reformulate products, and promote healthier lifestyles. By targeting high‑sugar beverages, the policy aims to curb diet‑related health risks, improve quality of life, and align with national efforts to strengthen preventive healthcare.

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