The UAE Ministry of Finance has introduced a new regulation establishing a minimum excise price of Dh1 per millilitre for liquids used in electronic smoking devices. Set to take effect on September 1, 2026, this policy is designed to bolster the country’s existing excise tax framework and ensure consistent standards across all tobacco and nicotine products. While the 100 percent excise tax rate on these items remains untouched, this new price floor aims to close gaps in tax enforcement and keep pace with the evolving market for vaping goods.

Officials noted that the move is part of a broader effort to improve tax compliance and prevent market practices that might undermine current fiscal policies. By setting this minimum threshold, the ministry intends to unify the treatment of electronic smoking tools with other tobacco products, such as traditional cigarettes and water pipe tobacco, which are currently subject to their own established pricing standards. This update reinforces the UAE’s commitment to maintaining a robust and standardized excise tax system across the tobacco industry.