Excise Tax
GTA
2026
Qatar’s new excise tax on sweetened drinks — what businesses must know before 6 July 2026
Law No. (2) of 2026 replaces Qatar’s flat-rate excise on sweetened drinks with a tiered, sugar-volume-based model. The law takes effect on 6 July 2026, leaving businesses approximately 89 days to restructure compliance, inventory, and product strategies.
01 The shift — from flat rate to tiered volume model
Under Law No. (25) of 2018, carbonated drinks were taxed at a flat 50% of retail sale price regardless of sugar content. Law No. (2) of 2026 replaces this with a tiered volume-based model. Tax liability is now calculated on the actual quantity of sugar or sweeteners present — meaning sugar content directly determines the tax burden per unit volume.
A product reformulated with lower sugar content moves into a lower tax tier and benefits from a materially reduced liability — creating a direct financial incentive for reformulation that did not exist under the old ad valorem model.
| Dimension | Previous — Law No. 25 of 2018 | New — Law No. 2 of 2026 |
|---|---|---|
| Calculation method | Flat % of retail sale price (ad valorem) | Tiered model based on sugar / sweetener volume |
| Rate for carbonated drinks | 50% of retail price | Tiered — varies by sugar content per unit |
| Incentive for reformulation | None — tax is price-based | Direct — lower sugar = lower tax tier |
| Product scope | Carbonated drinks, energy drinks, tobacco | Expanded to include juices with added sugar, concentrates, powders, extracts |
Tobacco and derivatives: 100% · Carbonated drinks: 50% · Energy drinks: 100% · Goods of a special nature: 100%
The specific tiered rate thresholds — including sugar content cutoffs and QAR-per-litre rates — will be set by a forthcoming Cabinet Decision expected before 6 July 2026. Monitor the Dhareeba Tax Portal.
02 Expanded scope of taxable goods
The updated schedule of excise goods now covers two distinct categories.
Ready-to-drink beverages
Sugar-sweetened soft drinks and juices with added sugar — both locally produced and imported.
Upstream and intermediate products
Concentrates, powders, extracts, and any product capable of being converted into a sweetened drink containing sugar or sweeteners.
The inclusion of concentrates and powders is an explicit anti-avoidance measure. Tax now applies at the earliest point in the supply chain where sugar content is determinable, closing the gap that previously allowed pre-drink imports to fall outside the excise schedule.
03 Who is liable?
Persons liable to pay excise tax include:
- Producers of excise goods outside suspended tax status
- Possessors of excise goods on which tax has not been paid
- Licensees upon release from a tax warehouse
- Importers of excise goods
- Any other person who releases excise goods for consumption
Where multiple persons simultaneously meet the liability conditions, they are jointly and severally responsible for the due tax.
04 Compliance requirements
Registration
Any person engaged in the production or importation of excise goods, or licensed to operate a tax warehouse, must apply for tax registration with the GTA. Entities already engaged in such activities as of the effective date must submit a registration application within 90 days of 6 July 2026 — by approximately 4 October 2026.
Stock declaration — the critical obligation
Any person holding excise goods at the time the law takes effect must submit a tax declaration disclosing stock levels as of the day before the effective date through the Dhareeba Tax Portal. The tax on declared stock is due upon submission. Payment must be made within 30 days from the due date.
Businesses must complete a comprehensive stock count and valuation before 6 July 2026.
Periodic tax return filing
Registered persons must submit a tax return for each tax period and pay the due tax within 15 days after the end of the tax period. Overpaid amounts may be reclaimed subject to the statute of limitations.
Record-keeping
- Maintain accurate, independent records of the movement of excise goods
- Retain all supporting documents to verify tax calculations and payments
- Comply with distinctive marking requirements as directed by the Minister
- Retain records for the periods specified in the Executive Regulations
Tax warehouse licensing
Businesses wishing to produce, transform, store, or receive sweetened drink products under suspended tax status must obtain a tax warehouse licence from the GTA. Places where concentrates, powders, gels, and extracts are directly transformed into final excise goods for consumer sale are explicitly ineligible for a warehouse licence.
05 Implementation timeline
06 Penalties and enforcement
Imprisonment for up to one year and/or a fine of up to three times the due tax amount.
Acts constituting evasion include: failure to register for more than 90 days after the deadline; failure to submit a tax return for more than one year; importing excise goods without paying the full due tax; producing, possessing, or transporting excise goods with unpaid tax with intent to evade; releasing goods from a tax warehouse without paying tax; and submitting false or forged documents.
In all evasion cases, excise goods are confiscated. Repeat offenders within five years face doubled penalties.
Violation of taxpayer confidentiality provisions carries a penalty of imprisonment for up to six months and/or a fine of up to QAR 50,000.
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