The UAE has introduced a minimum excise price of AED 1 per millilitre (mL) for liquids used in electronic smoking devices and tools, effective September 1, 2026. The Ministry of Finance announced the decision on August 6. The rule applies across the UAE and affects businesses dealing in vaping liquids, while consumers could see price changes in some lower-priced products. The existing 100% excise tax rate on covered vaping products remains unchanged.
- Location: UAE
- Organisation: UAE Ministry of Finance
- Effective: September 1, 2026
- Affected: E-liquid manufacturers, importers, retailers and consumers
- New minimum excise price: AED 1 per mL
- Existing excise rate: 100% for covered electronic smoking products and liquids
- Status: The new minimum excise price is now in force
The UAE vape tax change is now in effect. From September 1, 2026, liquids used in electronic smoking devices and tools must have a minimum excise price of AED 1 per mL for tax purposes. The UAE Ministry of Finance announced the decision on August 6, saying it is intended to improve the implementation of excise tax and support compliance with UAE tax legislation.
Importantly, this is not a new 100% tax rate and it is not a government-set minimum retail price. The existing 100% excise rate remains in place; the new rule establishes a minimum value used when calculating the tax.
What is the new UAE vape tax rule from September 1, 2026?
The new rule sets the minimum excise price for covered e-liquids at AED 1 per millilitre.
The UAE Ministry of Finance said the measure applies to liquids used in electronic smoking devices and tools. The decision came into force on September 1, 2026.
For example:
- 10mL bottle: Minimum excise price of AED 10
- 30mL bottle: Minimum excise price of AED 30
- 60mL bottle: Minimum excise price of AED 60
- 100mL bottle: Minimum excise price of AED 100
The important point is that these figures represent the minimum excise value, not necessarily the price a customer pays in a UAE shop.
Is the UAE increasing the vape excise tax from 100%?
No. The existing 100% excise tax rate remains unchanged.
The Federal Tax Authority says liquids used in electronic smoking devices and tools, along with electronic smoking devices and tools themselves, are subject to excise tax. The 100% rate for electronic smoking products and their liquids has applied since December 1, 2019.
For excise goods subject to a 100% rate, the Federal Tax Authority explains that the excise tax amount is generally calculated as half of the retail sale price when that price is used as the excise-price basis.
The September 1 decision therefore changes the minimum excise-price floor, rather than doubling or otherwise increasing the existing tax percentage.
Is AED 1 per mL the new minimum price for vape liquids in UAE shops?
No. AED 1 per mL is a minimum excise price, not a minimum retail price.
This distinction is important. The Ministry of Finance’s decision establishes the minimum value used for excise-tax purposes. It does not state that retailers must sell every e-liquid product for at least AED 1 per mL.
The practical impact will depend on how a product’s excise value compares with the new minimum.
Lower-priced liquids are more likely to be affected if their relevant excise value falls below AED 1 per mL. However, the exact change in the price paid by consumers has not been specified by the Ministry of Finance and will depend on individual products and retailers.
Why did the UAE introduce the new minimum excise price?
The Ministry of Finance said the decision is designed to enhance the effectiveness of excise-tax implementation and support compliance with UAE tax legislation. It also aims to keep pace with developments in the excise-goods market and ensure consistent standards across tobacco and electronic smoking products.
The change forms part of the UAE’s wider excise-tax framework.
The Federal Tax Authority currently lists several categories of excise goods, including tobacco and tobacco products, liquids used in electronic smoking devices, electronic smoking devices, energy drinks and certain sweetened drinks.
The UAE’s excise-tax system was introduced in 2017. Electronic smoking devices and their liquids were added to the excise-goods regime from December 1, 2019, with a 100% tax rate.
Do cigarettes and shisha tobacco face the new AED 1 per mL rule?
No. The new AED 1-per-mL minimum specifically applies to liquids used in electronic smoking devices and tools.
The Ministry of Finance confirmed that existing minimum excise prices will continue to apply to cigarettes, water pipe tobacco, ready-to-use tobacco products and similar products.
This means the September 1 change should not be described as a new minimum excise price covering every tobacco product in the UAE.
The change matters most to UAE vaping consumers and businesses selling or importing e-liquids.
For residents, some lower-priced vaping liquids could face a higher tax burden under the new minimum valuation. However, the government has not announced a uniform retail-price increase for consumers.
For businesses, the change means the new AED 1-per-mL minimum must be considered when calculating excise obligations for covered liquids.
The wider objective is also significant. The Ministry of Finance says the decision supports tax compliance and helps maintain consistent treatment across tobacco and electronic smoking products.
What should UAE residents expect now?
Residents should expect the new rule to apply to covered e-liquids purchased or traded in the UAE from September 1.
There is no confirmed government announcement stating that every vape liquid will rise by a specific amount. The final retail impact will depend on the product’s existing pricing, tax calculation and business pricing decisions.
For consumers, the clearest takeaway is that AED 1 per mL is the new minimum excise value for covered e-liquids, while the existing 100% excise rate remains in place.
FAQs
When did the new UAE vape tax take effect?
The new minimum excise price for liquids used in electronic smoking devices took effect on September 1, 2026, following the Ministry of Finance’s August 6 announcement.
How much is the new minimum excise price for vape liquid?
The minimum excise price is AED 1 per millilitre of liquid used in covered electronic smoking devices and tools.
Is the UAE’s vape tax now 200%?
No. The existing excise tax rate remains 100%. The new rule establishes a minimum excise price of AED 1 per mL for calculating the tax.
Will vape prices increase across the UAE?
Not necessarily by a fixed amount. The new rule could have a greater effect on lower-priced e-liquids, but the government has not announced a uniform retail-price increase.
Does the new rule apply to cigarettes and shisha tobacco?
No. The AED 1-per-mL minimum applies to liquids used in electronic smoking devices and tools. Existing minimum excise-price rules for cigarettes, water pipe tobacco and other specified tobacco products remain in place.
The UAE’s new vape tax rule is now effective, introducing a minimum excise price of AED 1 per mL for liquids used in electronic smoking devices and tools. The existing 100% excise tax rate has not changed, and AED 1 per mL is not a mandatory retail selling price.
The immediate impact will depend on individual products, with lower-priced e-liquids potentially facing a higher taxable value under the new minimum.
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