2FIRSTS | UAE Sets Dh1-Per-ml Minimum Excise Price for Vape Liquids From Sept. 1 While Keeping 100% Tax Rate
The UAE will implement a minimum excise price of AED 1 per ml for e-liquids starting September 1, 2026.Summary
Starting September 1, 2026, the UAE Ministry of Finance will introduce a minimum excise price of AED 1 per millilitre for e-liquids used in vaping and electronic smoking devices. This measure adjusts the minimum taxable base rather than the tax rate, which will remain at 100% for all tobacco and electronic smoking products.
The goal of this policy is to establish unified tax standards, improve market compliance, and prevent pricing loopholes that could undermine the excise tax framework. While the tax rate remains unchanged, the new rule ensures that the taxable base for any product cannot fall below AED 1 per millilitre, regardless of its actual retail price.
This change primarily affects e-liquids and liquids for electronic smoking devices, while existing minimum excise prices for cigarettes, shisha tobacco, and ready-to-use tobacco products will remain unchanged. The vaping industry may need to reassess pricing strategies and cost structures to accommodate this new tax calculation framework.
(Source：2Firsts)
