Qatar Introduces New Excise Tax Mechanism on Sugar-Sweetened Beverages

Qatar's General Tax Authority (GTA) has begun implementing a new excise tax mechanism covering sugar-sweetened beverages, effective from 6 July 2026. The mechanism follows amendments introduced under Law No. (2) of 2026 to the Excise Tax Law, which expanded the schedule of excise goods to include soft drinks, juices, and other beverages containing added sugar, as well as concentrates, powders, and extracts that can be converted into such drinks. Under the new framework, the applicable tax rate depends on the level of sugar or added sweetener in the product, with the tax payable only on beverages classified as having medium or high sugar content. The GTA has clarified that the tax applies solely to packaged products; beverages prepared for immediate consumption and served to final consumers without sealed packaging are exempt. Businesses holding taxable inventory are required to submit a transitional declaration through the Dhareeba platform to record their existing stock. Companies with total inventory below 200,000 liters must file the declaration only, with no tax due on that stock, while those holding 200,000 liters or more must additionally submit an audited inventory report. Taxpayers are required to file their excise tax returns within 90 days of 6 July 2026 and settle any tax due within 30 days of filing. For companies operating in Qatar's food and beverage sector, including importers, distributors, and retailers, the change introduces new compliance obligations that should be reviewed promptly to avoid penalties. The GTA has described the measure as part of a broader public health initiative aimed at reducing consumption of high-sugar products.