Arabian Gulf nations to tax sugary drinks

Facing a rise in obesity and diabetes, particularly among its children and youth, nations of the Arabian Gulf are to introduce a 100% tax on sugary drinks.

A unified tax system within GCC (Gulf Cooperation Council) nations would impose the tax on all soft drinks which contain in excess of 5 grams sugar per 100 milliliters.

Legislation would also reduce salt in packed products and demand clear food labelling.

In 2008, the Health Authority of Abu Dhabi (HAAD) revealed that 18% of its population had diabetes and nearly 26% had prediabetes – with other nations in the region having similar rates.

Across the GCC region there is a fear that the prevalence of diabetes might reach 50% of the population with The International Diabetes Federation reporting that diabetes cost the region nearly Dh61.70 billion (US$16.8 billion) in 2014.

The tax changes, which will also see a 100% tax on cigarettes, will be introduced in the second quarter of 2017. 

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