Ministry of Finance Announces Decision introduces a Minimum Excise Price for Liquids Used in Electronic Smoking Devices Effective 1 September 2026

Abu Dhabi, 06 August, 2026

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. The Decision aims to enhance the effectiveness of excise tax implementation and support compliance with the UAE’s tax legislation.

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 Decision introduces a minimum Excise Price of AED 1 per millilitre (mL) for Liquids used in Electronic Smoking Devices and Tools. The Decision will enter into force on 1 September 2026.

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.