Govt slashes 20% excise duty on low-sugar mineral water, hydration drinks

The government has abolished 20% Federal Excise Duty on mineral waters, aerated waters, hydration drinks and electrolyte beverages containing artificial sweetener or sugar content not exceeding 5 grams per 100 millilitres, according to a news report. 

The amendment was moved by the Minister for Finance and Revenue in Clause 6, Sub-Clause 14, Paragraph 1 of the Finance Bill 2026, as reported by the Standing Committee.

The change has been made through an amendment to the Finance Bill 2026 by revising the federal excise schedule of the Federal Excise Act.

Previously, all mineral waters, aerated waters, hydration drinks and electrolyte beverages were subject to 20% Federal Excise Duty, regardless of artificial sweetener or sugar content.

Under the amended provision, the duty will not apply to mineral waters, aerated waters, hydration drinks or electrolyte beverages specifically formulated to support hydration and electrolyte replenishment if their artificial sweetener or sugar content, or both, does not exceed 5g per 100ml.

The government has also abolished Super Tax on exporters under the amended bill.