The UAE will set a minimum excise price of AED 1 per millilitre for liquids used in electronic smoking devices and tools from 1 September 2026, while existing minimum prices for tobacco products remain unchanged.
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 Cabinet Decision No. 137 of 2026.
Issued on 24 July 2026, the decision applies to such liquids whether or not they contain nicotine. Their excise price will continue to be calculated under article 11 of Cabinet Decision No. 197 of 2025, subject to the new minimum threshold.
The existing minimum excise prices for tobacco products will remain in place. These are AED 0.4 per cigarette for cigarettes, including electrically heated cigarettes, and AED 0.1 per gram for water pipe tobacco, ready-to-use tobacco and similar products.
The 100% excise tax rate applicable to tobacco products and liquids used in electronic smoking devices and tools under Cabinet Decision No. 197 of 2025 remains unchanged.
The decision also repeals Cabinet Decision No. 55 of 2019 on excise price for tobacco products and removes any provisions that conflict with Cabinet Decision No. 137 of 2026. It is to be published in the Official Gazette.
