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Gulf Digital News reported on May 4, 2026 that Bahrain’s Parliament is set to debate and vote on the amendments to the GCC Unified Selective Tax Agreement attached to Bahrain Decree No. 22 of 2026. The news outlet stated that the amendment introduces updated mechanisms for excise tax calculation and administration across member states. The publication added that the amendment, signed on 1 June 2025, revises key provisions of the existing GCC excise tax framework including tax calculation methods, definitions and administrative mechanisms.
The report noted that the updates provide greater flexibility for member states to apply excise tax using a percentage-based model, a fixed per-unit model or a hybrid approach combining both systems. It further detailed a key technical change that clarifies the retail price used for excise tax calculation will exclude VAT and excise tax itself. The Gulf Digital News article indicated that this clarification improves consistency and transparency in pricing structures across GCC markets.
According to Gulf Digital News, the reform introduces a policy shift in the taxation of sugar-sweetened beverages by linking excise duties more directly to sugar content rather than a uniform tax rate. The outlet connected this adjustment to public health objectives and World Health Organisation recommendations aimed at reducing sugar consumption. The World Health Organisation has long advocated for such fiscal measures to address non-communicable diseases in the region.
A 2024 review in the Eastern Mediterranean Health Journal examined sugar-sweetened beverages taxation in Saudi Arabia and the United Arab Emirates. The journal detailed how both countries implemented a 50 percent tax on carbonated drinks in 2017 and extended the levy to products with added sugar or sweeteners in 2019 and 2020 respectively. The publication observed that these taxes align with Vision 2030 in Saudi Arabia and similar economic diversification initiatives.
The Zakat, Tax and Customs Authority has confirmed plans to implement a new excise tax method for sweetened beverages based on total sugar content per 100 millilitres beginning January 1, 2026. This tiered structure replaces the previous flat rate and scales the tax according to sugar levels. Saudi Arabia’s move reflects the GCC-wide shift referenced in the Bahrain amendments.
Parliamentary approval of the decree would complete Bahrain’s ratification of the annex signed by all GCC states in June 2025, Middle East Briefing reported following the development. The briefing outlined potential effects on businesses dealing in tobacco, beverages and other excisable goods through revised compliance and pricing. Updates from KPMG in May 2026 highlighted concurrent authority workshops on excise tax alongside corporate tax discussions in the kingdom.
