The UAE Ministry of Finance has announced a new minimum excise price for liquids used in electronic smoking devices, with the measure set to take effect on September 1, 2026.
The decision introduces a minimum excise price of Dh1 per millilitre for e-cigarette liquids, reinforcing the country’s excise tax framework and promoting greater compliance across the tobacco and vaping sector.
Dh1 Per Millilitre Minimum Excise Price
Under the new regulation, all liquids used in electronic smoking devices and tools will be subject to a minimum excise price of Dh1 per millilitre.
According to the Ministry of Finance, the move is intended to strengthen enforcement of the UAE’s excise tax system while ensuring consistent tax standards across all tobacco and electronic smoking products.
The new pricing threshold will officially come into force on September 1, 2026.
Existing Tobacco Tax Rules Remain Unchanged
The ministry confirmed that the existing minimum excise prices for traditional tobacco products—including cigarettes, water pipe tobacco (shisha), ready-to-use tobacco products and similar items—will remain unchanged.
The decision applies only to the minimum price threshold used to calculate excise tax on e-cigarette liquids.
Supporting Tax Compliance
Officials said the measure reflects ongoing developments in the market for excise goods and aims to ensure that tax regulations remain aligned with changes in consumer products.
The ministry added that introducing a minimum excise price for vape liquids will help improve tax compliance and reduce practices that could undermine the effective implementation of excise tax regulations.
UAE Excise Tax Rate Remains at 100%
The UAE continues to impose a 100% excise tax on all tobacco products covered under the country’s excise tax regime.
Authorities clarified that this latest decision does not increase the excise tax rate. Instead, it establishes a minimum price benchmark for calculating tax on liquids used in electronic smoking devices.
The new measure forms part of the UAE’s broader efforts to strengthen tax administration, improve regulatory oversight and ensure fair application of excise tax across both conventional tobacco products and electronic smoking devices.
