UAE sets minimum excise price for e-cigarette liquids

Abu Dhabi: The United Arab Emirates (UAE) Ministry of Finance has introduced a minimum excise price for liquids used in electronic smoking devices and tools, with the new measure taking effect on September 1, 2026.

Announced on Thursday, August 6, the decision is part of the country’s efforts to strengthen the implementation of excise tax regulations and improve compliance with the UAE’s tax legislation, according to the Emirates News Agency (WAM).

Under the new rules, liquids used in electronic smoking devices and tools will be subject to a minimum excise price of Dirham 1 per millilitre.

The existing minimum excise price will continue to apply to cigarettes, water pipe tobacco, ready-to-use tobacco products and other similar tobacco products.

Strengthening the excise tax framework

The Ministry of Finance said the decision reflects developments in the market for excise goods and aims to ensure the consistent application of unified standards across all categories of tobacco and electronic smoking products.

It added that the measure is intended to enhance tax compliance and curb practices that could affect the effective implementation of the excise tax system.

The ministry also confirmed that the UAE’s 100 per cent excise tax on all tobacco products covered under the excise tax regime remains unchanged. The new decision only introduces a minimum excise price for liquids used in electronic smoking devices and tools.