Manufacturing or Importing Sweetened Products in Qatar?
As part of the State of Qatar’s continued efforts to strengthen its tax framework and promote public health, Law No. (2) of 2026 has been issued, amending certain provisions of Law No. (25) of 2018 on Excise Tax. These updates introduce significant changes to how excise tax is applied, particularly for sweetened beverages and related products.
The amendment brings in a tiered excise tax mechanism, where tax is calculated based on the sugar or sweetener content of the product, rather than applying a flat rate. This marks a shift toward encouraging healthier consumption patterns while aligning with global tax practices.
In parallel, the General Tax Authority has introduced an Excise Tax Warehouse Licensing Service (effective 1 April 2026), enabling businesses to store, process, and manage excise goods under a tax suspension regime, where excise tax is deferred until goods are released into the local market.
The General Tax Authority has confirmed that the new rules relating to sweetened beverages will come into effect on 6 July 2026, giving businesses time to assess the impact and adapt their operations.
This development reflects a broader GCC-wide trend toward linking excise tax to sugar content. Notably, Saudi Arabia introduced a similar tiered model earlier this year, signaling increasing regional alignment in health-focused taxation policies.
Who This Applies To?
This is relevant for businesses that:
- Manufacture, import, or distribute sweetened drinks in Qatar
- Deal in products that can be converted into beverages (e.g., concentrates, powders, extracts)
- Hold excise goods at the time the new law comes into force
- Operate or plan to operate licensed facilities for storing or processing excise goods
- Need to reassess pricing, product composition, and tax compliance strategies
Key Changes Under The New Law And Framework
- Tiered taxation based on sugar content: Excise tax will now be calculated depending on the level of sugar or sweeteners in the product, increasing the complexity of tax determination.
- Expanded scope of excise goods: The updated schedule includes sugar-sweetened beverages such as soft drinks and juices with added sugar and products that can be converted into drinks, including concentrates, powders, and extracts
- Mandatory stock declaration requirement: Businesses holding excise goods must submit tax declarations disclosing stock levels at the time the law takes effect through the Dhareeba Tax Portal
- Introduction of the tax warehouse regime: Businesses can now apply for licensed tax warehouses where excise goods may be produced, processed, stored, or received under a tax suspension arrangement, deferring excise tax liability until goods are released for consumption. This also facilitates the import and storage of raw materials without immediate tax payment and reduces the need for excise tax refund applications in certain cases (e.g., exports or qualifying inputs).
What This Means For Your Business?
Businesses operating in Qatar must act early to:
- Review product portfolios and sugar content levels
- Assess the financial impact of the new excise structure
- Ensure timely stock declarations through Dhareeba
- Evaluate the benefits of the tax warehouse regime, particularly for cash flow and supply chain efficiency
- Align internal systems with updated compliance requirements
These changes not only impact tax liability but also influence pricing, product strategy, cash flow management, and overall market competitiveness.
What MBG Helps With?
- Excise tax compliance review
- Excise related system alignment support
- Excise tax health check
- Assistance in excise tax audit
- Assistance in Excise tax refunds
- Advisory on tax warehouse licensing, implementation, and optimization
- Helping businesses to identify errors early and reduce the risk of penalties, amended returns, and disputes.
