Ministry of Finance introduces AED1 per millilitre minimum excise price for liquids used in electronic smoking devices to strengthen tax compliance and market regulation
Abu Dhabi: The UAE Ministry of Finance has announced a new minimum excise price for liquids used in electronic smoking devices and tools, as part of efforts to strengthen the effectiveness of the country’s excise tax system and enhance compliance with tax legislation.
Under the new decision, a minimum excise price of AED1 per millilitre (mL) will apply to liquids used in electronic smoking devices and tools, with the measure set to take effect on 1st September 2026.
The Ministry said the decision is intended to keep pace with developments in the market for excise goods and ensure the consistent application of standards across tobacco products and electronic smoking products.
The existing minimum excise price framework will continue to apply to cigarettes, water pipe tobacco (shisha), ready-to-use tobacco products and similar products, the Ministry added.
According to the Ministry of Finance, the new measure will support tax compliance and help address practices that could affect the effective implementation of excise tax regulations.
The UAE currently imposes an excise tax of 100% on all tobacco products covered under the excise tax regime.
The Ministry said the latest decision forms part of ongoing efforts to strengthen market oversight, improve tax administration and ensure fair application of excise tax policies across all relevant product categories.
