UAE Sets AED 1/mL Minimum Excise Price on Vape Liquids
The UAE Ministry of Finance has set a minimum Excise Price of AED 1 per millilitre for liquids used in electronic smoking devices and tools, starting from 1 September 2026. The change affects the value used to calculate Excise Tax on these products. It does not alter the existing 100% Excise Tax rate on e-liquids.
Businesses dealing in these products should now review their e-liquid ranges ahead of the effective date. This includes checking the volume recorded for each SKU and identifying any products where the current Excise Price is below the new AED 1 per mL minimum.
What Is the UAE's New Minimum Excise Price for Vape Liquids?
From 1 September 2026, vape liquids used in electronic smoking devices and tools will carry a minimum Excise Price of AED 1 per mL. The official WAM announcement confirms both the new threshold and the date from which it will apply.
For example, the minimum Excise Price would be AED 30 for a 30 mL bottle and AED 60 for a 60 mL bottle. This is a minimum value for Excise Tax purposes, not a new tax rate.
The Federal Tax Authority’s January 2026 Taxable Persons Guide continues to show e-liquids as subject to Excise Tax at 100%. That rate has applied since 1 December 2019. What changes in September is the minimum Excise Price used in the calculation.
Businesses with affected products should consider reviewing their current pricing and product records before the new threshold takes effect. An Excise Tax Health Check can help identify products that may require closer review.
What Exactly Did the Ministry of Finance Decide?
The Ministry of Finance announced the new measure on 6 August 2026. From 1 September 2026, liquids used in electronic smoking devices and tools will be subject to a minimum Excise Price of AED 1 per mL.
According to the Ministry, the change is intended to reflect developments in the excise goods market and improve consistency in the way Excise Tax rules are applied across tobacco and electronic smoking products. It is also aimed at supporting compliance and reducing practices that could weaken the effective application of the tax.
The measure sits within the UAE’s existing Excise Tax framework. This includes Federal Decree-Law No. 7 of 2017 on Excise Tax, as amended, and Cabinet Decision No. 197 of 2025, which sets out the relevant excise goods, applicable tax rates and the rules for determining the Excise Price.
Cabinet Decision No. 197 of 2025 has applied since 1 January 2026. It also repealed Cabinet Decision No. 52 of 2019 under Article 14, with Article 15 confirming its effective date.
One point remains important for reporting purposes. As of 7 August 2026, the public announcement does not identify the new minimum-price measure by a decision number. Until an official number is published, it is more accurate to refer to it simply as “the Decision”.
How Is a Minimum Excise Price Different From a Retail Price?
A minimum Excise Price is not the same as a minimum retail price.
The minimum Excise Price is the floor used for Excise Tax purposes. A retail price, by comparison, is the commercial price charged to the customer. The new measure therefore should not be described as a requirement for retailers to sell vape liquids at no less than AED 1 per mL.
The National illustrated the distinction using a 60 mL bottle priced at AED 40. Under the new minimum, the product would be taxed as if its price were AED 60 because the applicable minimum Excise Price is AED 1 for every millilitre. Read The National’s coverage of the announcement.
This distinction matters because a business’s commercial selling price and the Excise Price relevant for tax purposes may not be the same. Pricing, tax coding and product records should therefore be reviewed separately rather than treating AED 1 per mL as a mandatory shelf price.
Businesses reviewing historic or current Excise Tax treatment can also consider a more detailed Excise Tax Audit.
Which Products Are Covered — and Which Stay Unchanged?
The new floor applies specifically to liquids used in electronic smoking devices and tools.
Article 4 of Cabinet Decision No. 197 of 2025 defines this category broadly to include liquids used in such devices and similar products whether or not they contain nicotine, subject to the applicable Customs codes.
This means the measure is not limited only to nicotine-containing vape liquids.
The 6 August announcement does not extend the AED 1 per mL minimum to electronic smoking devices, coils, hardware or accessories. The Decision as announced specifically introduces the new minimum for liquids, so the AED 1 per mL floor should not be extended to other products without an applicable legal basis or further official guidance.
The position announced by the Ministry can be summarised as follows:
| Product category | Minimum Excise Price | Status |
| One cigarette | AED 0.40 | Unchanged |
| Water pipe tobacco, ready-to-use tobacco and similar products | AED 0.10 per gram | Unchanged |
| Liquids used in electronic smoking devices and tools | AED 1.00 per mL | New — from 1 September 2026 |
The existing tobacco minimums originate from Cabinet Decision No. 55 of 2019. The FTA’s current guidance confirms a minimum Excise Price of AED 0.40 for each cigarette and AED 0.10 for each gram of water pipe tobacco, ready-to-use tobacco or similar products.
E-liquids, meanwhile, continue to carry the existing 100% Excise Tax rate. Cabinet Decision No. 197 of 2025 expressly sets the rate for liquids used in electronic smoking devices and tools at 100%.
The September measure therefore adds a minimum Excise Price for these liquids without changing the underlying rate.
Why Is the UAE Introducing This Change Now?
The Ministry of Finance has linked the Decision to developments in the excise goods market and to the consistent application of unified standards across tobacco and electronic smoking products.
It also stated that the measure supports tax compliance and is intended to limit practices that may affect the effective implementation of Excise Tax.
The announcement does not indicate a future rate increase or a wider extension of the AED 1 per mL floor to other electronic smoking products. Businesses should therefore distinguish the published measure from assumptions about future policy changes.
What Does This Mean for Vape Businesses and Importers?
Businesses dealing with e-liquids may wish to complete a focused review before 1 September 2026.
Relevant review areas include:
- identifying every SKU containing liquids used in electronic smoking devices and confirming the volume recorded in millilitres;
- comparing current declared Excise Prices with the AED 1 per mL minimum;
- reviewing pricing and margin models where lower-priced products may be affected;
- checking that product, import and Customs documentation records e-liquid volumes consistently;
- reviewing commercial agreements where Excise Tax costs are passed through to distributors or customers; and
- checking product registration and Excise Tax records maintained through the relevant FTA systems.
These are practical review areas rather than additional procedural obligations specifically stated in the Ministry’s 6 August announcement.
The announcement does not set out detailed transitional treatment for stock already held in the UAE on 1 September 2026. It also does not prescribe a specific re-declaration process for existing products whose Excise Price is below the new floor. Businesses should therefore avoid assuming a particular transitional treatment until further guidance is issued by the Ministry of Finance or the Federal Tax Authority.
The FTA’s current guide confirms that Excise Tax can arise when Excise Goods are imported, produced, stockpiled or released for consumption in the UAE. It also identifies persons releasing Excise Goods from a Designated Zone among those potentially required to account for the tax.
The precise impact of the new minimum should therefore be considered by reference to the taxpayer’s role and the relevant tax point.
Businesses seeking a broader readiness assessment may consider an Excise Tax Health Check. Where technical clarification or representation before the Authority is required, support may also be obtained through FTA-approved Tax Agency Services.
How ADEPTS Can Help
ADEPTS can assist businesses affected by the new minimum Excise Price in reviewing their e-liquid portfolios before 1 September 2026.
The review can cover current Excise Prices against the AED 1 per mL floor, SKU volumes and product classifications, supporting records and areas requiring further clarification. Where appropriate, businesses can undertake an Excise Tax Health Check or a more detailed Excise Tax Audit to identify potential compliance gaps.
ADEPTS can also support businesses in reviewing their wider UAE taxation position and, where an issue remains unclear, assist with appropriate engagement with the Federal Tax Authority through its Tax Agency Services.
Conclusion
From 1 September 2026, liquids used in electronic smoking devices and tools will be subject to a minimum Excise Price of AED 1 per mL. The measure does not change the existing 100% Excise Tax rate on e-liquids, and the existing minimum Excise Prices for cigarettes and covered tobacco products remain unchanged.
For affected importers, producers and other Excise Tax registrants, the key task before implementation is to identify products that may fall below the new floor and review the underlying product and pricing data.
Any transitional, stock-specific or Designated Zone issues not addressed in the announcement should be assessed against subsequent Ministry of Finance or FTA guidance rather than assumed in advance.
References
- Emirates News Agency. (2026, August 6). Ministry of Finance introduces minimum excise price for liquids used in electronic smoking devices effective 1 September. WAM article
- Federal Tax Authority. (2019). Cabinet Decision No. 55 of 2019 on the minimum excise price for tobacco products. FTA Decision No. 55 of 2019
- Federal Tax Authority. (2026). Taxable person guide for excise tax. FTA Taxable Person Guide for Excise Tax
- Ministry of Finance. (n.d.). Ministry of Finance. UAE Ministry of Finance
- Ministry of Finance. (2025). Cabinet Decision No. 197 of 2025 on excise goods, excise tax rates and the methods of calculating the excise price. Cabinet Decision No. 197 of 2025
- The National. (2026, August 6). UAE to introduce minimum taxation price for e-cigarette and vape liquids from September 1. The National article
- United Arab Emirates Government. (2017). Federal Decree-Law No. 7 of 2017 on excise tax. UAE Legislation. Federal Decree-Law No. 7 of 2017
