On 27 October 2026, Kuwait’s Council of Ministers approved a draft decree-law adopting the GCC Unified Excise Tax Agreement and its amendment, and referred it to His Highness the Amir for approval. The tax will take effect once the decree-law is issued and published in the Official Gazette.
What is proposed?
According to the published announcements, the draft framework would apply selective excise tax at the following rates:
- 100% on tobacco products and energy drinks.
- 50% on carbonated beverages.
- Variable rates on sweetened drinks, depending on their sugar content.
Excise tax already applies in the other GCC states. The measure is intended to reduce consumption of products harmful to health and to diversify public revenues.
Important: this is not yet law
At the time of writing, the decree-law has been approved by the Cabinet but has not yet been published in the Official Gazette. The final scope, rates, start date and implementing regulations should be confirmed once the official text is issued.
How can affected businesses prepare?
- Identify products in your portfolio that may fall within scope.
- Assess the impact on pricing, margins and cash flow.
- Review inventory, customs and supply-chain processes.
- Prepare accounting and ERP systems to record and report excise tax.
- Follow official announcements on registration and filing requirements.
Our team can help importers, manufacturers and retailers assess the expected impact and get their systems ready.
This article is for general information only and does not constitute tax or legal advice. For advice on your specific situation, please contact our team.
