The UAE Ministry of Finance has announced a new decision setting a minimum excise price for liquids used in electronic smoking devices and tools, as part of efforts to strengthen enforcement of the country’s excise tax regime.
Under the decision, a minimum excise price of Dh1 per millilitre will apply to liquids used in electronic smoking devices and tools. The rule comes into force on September 1, 2026.
The existing minimum excise price for cigarettes, water pipe tobacco, ready-to-use tobacco products and similar items will remain unchanged.
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The ministry said the decision is intended to keep pace with developments in the market for excise goods and ensure that unified standards are applied consistently across all categories of tobacco and electronic smoking products.
It added that the move supports tax compliance and helps limit practices that could affect the effective implementation of excise tax.
The UAE levies excise tax at a rate of 100 per cent on all tobacco products covered under the excise tax regime. This rate remains unchanged; the new decision concerns only the minimum price threshold used to calculate the tax on e-liquids.
Source: Khaleej Times