What is the excise tax rate on energy drinks?

Article 12 – Tax Rates For the purposes of Article 3 of the Decree-Law, Tax shall apply to the Excise Goods stipulated under Article 2 of the Decision pursuant to the following rates: Excise Good Tax Rate Tobacco and tobacco products 100% Liquids used in electronic smoking devices and tools 100% Electronic smoking devices and tools 100% Carbonated drinks 50% Energy drinks 100% Sweetened drinks 50%

Article 10 – Tax Rates and Amounts 1. For the purposes of Article 3 of the Decree-Law, Tax shall apply to the Excise Goods stipulated under Article 2 of the Decision pursuant to the following rates or amounts: Excise Goods 1 2 3 4 5 Tax Rate or Amount in AED 100% 100% 100% 100% Tobacco and tobacco products. Liquids used in electronic smoking devices and tools. Electronic smoking devices and tools. Energy drinks. Sweetened drinks that contain 5 (five) grams or more but less than 8 (eight) grams sugar or other sweeteners per 0.79 per litre 100 (one hundred) millitre. 6 Sweetened drinks that contain 8 (eight) grams or more 1.09 per litre sugar or other sweeteners per 100 (one hundred) millitre. Cabinet Decision No. 197 of 2025 – As published by the Ministry of Finance 5 7 Sweetened drinks that contain less than 5 (five) grams 0 per litre sugar or other sweeteners per 100 (one hundred) millitre. 8 Sweetened drinks that contain only artificial sweeteners, or artificial sweeteners and less than 5 (five) grams sugar 0 per litre or other sweeteners per 100 (one hundred) millitre. 2. For the purposes of Clause 1 of this Article, the quantity of sugar or other sweeteners in concentrates, powders, gels, and extracts that meet the definition of Sweetened Drinks shall be calculated based on the final product form, in accordance with the Producer's guidelines. If guidelines regarding the quantity of sugar or other sweeteners in concentrates, powders, gels, and extracts are unavailable or proven inaccurate, the Authority shall determine the mechanism for calculating the percentage of sugar and other sweeteners in these goods. 3. For the purposes of Clause 1 of this Article, if a Sweetened Drink contains naturally occurring sugar in addition to added sugar or other sweeteners, the quantity of naturally occurring sugar in the beverage shall be calculated within the quantity of sugar or other sweeteners. 4. For the purposes of Clause 1 of this Article, if the calculation of the Tax on the Excise Good results in fractions of a Fils, the value of the Tax shall be rounded at the level of the good to the nearest four decimal places of the Dirham upon registration with the Authority, and the value of the Tax Due for the purposes of periodic returns shall be rounded to the nearest Fils, in accordance with the rules of arithmetic rounding.

Article 3 – Tax Calculation2 A Cabinet Decision shall be issued at the suggestion of the Minister to determine the following: 1. The tax rates that shall be imposed on Excise Goods as a percentage of the Excise 2 Article amended as per Federal Decree-Law No. 7 of 2025 Federal Decree-Law No. 7 of 2017 and its amendments – As published by the Ministry of Finance 4 Price, provided that the tax rate imposed on such goods shall not exceed (200%) of the Excise Price of the goods. 2. The tax rates that shall be imposed on Excise Goods as a specific amount per unit of measurement, provided that such amount shall not exceed AED 100 (one hundred Dirhams) per unit of measurement. 3. The unit of measurement, the basis of imposing the Tax as a specific amount, and the method of calculating the Excise Price.

Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts 1. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks by mixing such goods with another product by the retailer, shall be the higher of the following: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if applicable; Ministerial Decision No. 1 of 2025 – As published by the Ministry of Finance 2 b. The Designated Selling Price for this Good to the retailer that is identified, and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the Tax included therein in accordance with the mechanism provided for in Clause (2) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 2. For the purposes of implementing the mechanism referred to in paragraph (b) of clause (1) of this Article, the “Designated Selling Price” is the “Designated Retail Sales Price”. 3. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks, which are not referred to in Clause (1) of this Article, is the Excise Price calculated in accordance with Clause (1) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 4. The Taxable Person shall keep the records required to evidence the “Designated Selling Price” of the excise good, and any deductions made thereon and the quantities sold.

Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts 1. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks by mixing such goods with another product by the retailer, shall be the higher of the following: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if applicable; b. The Designated Selling Price for this Good to the retailer that is identified, and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the Tax included therein in accordance with the mechanism provided for in Clause (2) of Article (13) of Cabinet Decision No. 52 of 2019 referred herein. 2. For the purposes of implementing the mechanism referred to in paragraph (b) of clause (1) of this Article, the “Designated Selling Price” is the “Designated Retail Sales Price”. Ministerial Decision No. 236 of 2019- Issue Date: 29th of September 2019 – Unofficial translation 2 3. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks, which are not covered by Clause (1) of this Article, is the Excise Price calculated in accordance with Clause (1) of Article (13) of Cabinet Decision No. 52 of 2019 referred herein. 4. The Taxable Person shall keep the records required to evidence the “Designated Selling Price” of the excise good, and any deductions made thereon and the quantities that have been sold.