UAE fixes excise tax on e‑cigarette liquids at AED 1 per ml

The United Arab Emirates will impose a fixed minimum excise price of AED 1 for each millilitre of liquid used in electronic smoking devices. The measure, set out in Cabinet Decision No. 137 of 2026 and announced by the Ministry of Finance, takes effect on 1 September 2026.

The new rate applies to all vape liquids, regardless of nicotine content, and is part of a broader update that keeps the existing minimum excise prices for cigarettes, water‑pipe tobacco and other tobacco products. Retailers are expected to adjust prices accordingly, meaning consumers may see higher costs for larger bottles of e‑cigarette liquid.

The policy aims to standardise taxation across smoking products, improve compliance with UAE excise legislation and align the country’s rules with Gulf Cooperation Council standards.