The UAE will introduce a minimum Excise Price of AED 1 per millilitre for Liquids used in Electronic Smoking Devices and Tools from 1 September 2026, under a new Ministry of Finance Decision aimed at strengthening excise tax compliance.
The Ministry of Finance has announced the issuance of a Decision on the minimum Excise Price for Tobacco Products and Liquids used in Electronic Smoking Devices and Tools.
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. It introduces a minimum Excise Price of AED 1 per millilitre (mL) for Liquids used in Electronic Smoking Devices and Tools.
The Ministry stated that the Decision aims 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 also supports tax compliance and helps limit practices that may affect the effective implementation of the excise tax. The UAE levies excise tax at a rate of 100% on all tobacco products covered under the excise tax regime.
The Decision will enter into force on 1 September 2026.
This announcement was made on 6 August 2026.
