UAE sets minimum excise price for liquids used in electronic smoking devices

Dubai: The UAE Ministry of Finance has announced a new minimum excise price for liquids used in electronic smoking devices and tools, with the measure set to take effect on September 1, 2026.

The ministry said it has issued a decision on the minimum excise price for tobacco products and liquids used in electronic smoking devices and tools as part of efforts to strengthen the implementation of the UAE's excise tax system.

Under the decision, a minimum excise price of Dh1 per millilitre (mL) will apply to liquids used in electronic smoking devices and tools from September 1.

A minimum excise price is the minimum value used for calculating excise tax, regardless of how much a product is sold for. It is different from a minimum retail price, which sets the lowest price a consumer can pay in a shop.

Under the new decision, the minimum excise price for liquids used in electronic smoking devices and tools will be Dh1 per millilitre. This means a 10mL bottle would have a minimum excise price of Dh10, while a 30mL bottle would have a minimum excise price of Dh30. A 60mL bottle would have a minimum excise price of Dh60.

The Ministry of Finance said the new decision does not change the minimum excise prices that already apply to other tobacco products.

"Under the decision, the existing minimum excise price will continue to apply to cigarettes, water pipe tobacco, ready-to-use tobacco products, and similar products," the ministry said in a statement.

"The decision introduces a minimum Excise Price of Dh1 per millilitre (mL) for liquids used in electronic smoking devices and tools. The decision will enter into force on September 1, 2026."

According to the Ministry of Finance, the decision aims to "enhance the effectiveness of excise tax implementation and support compliance with the UAE's tax legislation."

The ministry said the measure has been introduced to "keep pace with developments in the market for excise goods and ensure the consistent application of unified standards across all categories of tobacco and electronic smoking products."

It added that the decision "supports tax compliance and helps limit practices that may affect the effective implementation of the excise tax."

The Ministry of Finance said the UAE continues to levy 100 per cent excise tax on all tobacco products covered under the country's excise tax regime.

The new minimum excise price for liquids used in electronic smoking devices and tools will become part of that framework from September.

Excise tax is levied on a range of selected goods in the UAE, including tobacco products. The Ministry of Finance said the latest decision updates the minimum excise price framework to include liquids used in electronic smoking devices and tools while maintaining the existing minimum excise prices for other tobacco products.

The ministry said the measure is intended to ensure a consistent approach across tobacco and electronic smoking products, reflecting changes in the market while supporting the effective implementation of the country's excise tax system.