Bahrain is preparing to overhaul the way excise duties are calculated on sugary beverages, moving towards a structure that links taxation to sugar content rather than product price, The Daily Tribune reported.

According to the Ministry of Finance and National Economy and the National Bureau for Revenue, a proposed amendment to the Gulf Cooperation Council (GCC) excise tax framework would give member states greater flexibility in applying duties on selected goods. Under the revised model, taxes could be levied as a percentage of a product’s value, as a fixed charge per unit, or through a combination of both methods, replacing the current single-method approach.

Officials briefed members of parliament at an April 22, 2026 meeting, explaining that the revised framework is specifically targeted at sweetened drinks, which would be taxed based on a fixed charge tied to their sugar content. The officials said the new system supports public health goals and is consistent with World Health Organisation guidance on curbing sugar consumption.

Bahrain first adopted the regional excise tax framework through Law No. 39 of 2017, which established duties on a defined set of product categories. The GCC amendment that underpins the latest changes was signed on June 1, 2025, and revises the definition and calculation of taxable value to allow alternative pricing mechanisms.

The amendment also removes existing language from Article 3 concerning tax rates on harmful, luxury, and environmentally damaging goods, with those provisions being transferred to the updated framework. Revisions to Article 16 would additionally allow each GCC member state to determine its own payment timelines and conditions independently.
The Ministry and the Bureau noted that Bahrain would require further amendments to its national excise legislation under Decree No. 78 of 2025 to bring domestic law into alignment with the regional changes.