The UAE will introduce a minimum excise price of Dh1 per millilitre for liquids used in electronic smoking devices and tools from September 1, 2026. The change was announced by the UAE Ministry of Finance and affects businesses and consumers involved in the sale and purchase of vape and e-cigarette liquids across the country. It matters because products priced below Dh1 per ml will have their existing 100% excise tax calculated using the new minimum value, which could increase the final cost of some products.
- Location: UAE
- Organisation: UAE Ministry of Finance and Federal Tax Authority
- Status: Confirmed; effective from September 1, 2026
- Who is affected: Vape users, retailers, importers, manufacturers and suppliers
- Business impact: Lower-priced e-liquids may face a higher taxable value
- What’s next: Businesses must apply the new minimum excise price when the rules take effect
The UAE vape tax rules will change from September 1, 2026, when a new minimum excise price of Dh1 per millilitre takes effect for liquids used in electronic smoking devices and tools. The UAE Ministry of Finance confirmed the change as part of the country’s excise tax framework. The move does not introduce a new tax rate, but it changes the minimum value used to calculate the existing 100% excise tax on e-liquids. As a result, some lower-priced vape products could become more expensive.
What is the UAE’s new minimum excise price for vape liquids?
The UAE’s new rule sets a minimum excise price of Dh1 per millilitre for liquids used in electronic smoking devices and tools.
According to the UAE Ministry of Finance, the measure takes effect on September 1, 2026. It is part of a decision covering minimum excise prices for tobacco products and liquids used in electronic smoking devices.
The important point for consumers is that this is not a new 100% tax on vape liquids.
Electronic smoking devices and the liquids used in them have already been subject to a 100% UAE excise tax since December 1, 2019, according to the Federal Tax Authority.
The September 1 change instead introduces a minimum value that can be used when calculating the existing tax.
How could the new UAE vape tax rule affect prices?
Some lower-priced vape liquids could become more expensive because their excise tax may be calculated using the new Dh1-per-ml minimum value.
For example, a 60ml bottle sold for Dh40 is priced below the new minimum excise value of Dh60. Under the new framework, the excise calculation would use the applicable minimum value rather than the lower selling price.
However, the exact retail price increase will vary.
The UAE Ministry of Finance has confirmed the new minimum excise price, but it has not published a list showing exactly how much individual vape products will cost after September 1. Retailers and suppliers may absorb part of the additional cost or pass it on to customers.
Products already meeting or exceeding the Dh1-per-ml threshold may be affected differently from lower-priced products.
Why is the UAE changing the excise price for e-liquids?
The UAE Ministry of Finance said the decision aims to enhance the effectiveness of excise tax implementation and support the development of the country’s excise tax framework.
Excise tax in the UAE applies to specific goods, including tobacco products, electronic smoking devices, vape liquids, energy drinks and sweetened drinks. The Federal Tax Authority administers the tax system and sets out the categories and applicable mechanisms under the UAE’s excise tax framework.
The new rule also follows a wider global trend of governments using taxation and regulation to address vaping and tobacco consumption.
The World Health Organization says higher tobacco taxes are an effective tool for reducing tobacco use, particularly among young people and lower-income groups. However, there is no official estimate showing how much the UAE’s new minimum excise price will reduce vaping specifically.
Will higher prices make people cut down on vaping?
Higher prices could influence consumer behaviour, but the actual impact in the UAE has not yet been independently established.
Doctors and vape users quoted in recent reporting have suggested that more expensive products could encourage some people to cut back or reconsider their spending. Others may continue vaping despite higher prices.
These reactions should be viewed as individual opinions rather than evidence of a nationwide change in behaviour.
Research on tobacco taxation generally shows that higher prices can reduce consumption. However, those findings cannot be directly used to predict a specific reduction in UAE vaping because the September 1 measure applies to a particular minimum excise price mechanism.
The policy’s real impact on consumer behaviour will become clearer only after it comes into force.
What does the new rule mean for vape retailers in the UAE?
Vape retailers, importers and suppliers will need to review how the new minimum excise price affects their products and pricing.
Businesses selling e-liquids below Dh1 per ml could face a higher taxable value under the updated framework. This may affect margins, wholesale costs and final retail prices.
Some retailers may choose to absorb part of the additional cost to remain competitive, while others could adjust their prices.
Industry representatives have also raised concerns that a significant gap between regulated and unofficial products could encourage some consumers to seek cheaper alternatives. This is a business concern, not an outcome confirmed by the UAE government.
The Federal Tax Authority continues to oversee compliance with UAE excise tax rules for applicable products.
How does the UAE’s approach compare with other countries?
Countries are tightening their approach to vaping, although their policies differ significantly.
The United Kingdom will introduce its Vaping Products Duty from October 1, 2026. The UK government has confirmed a flat duty of £2.20 per 10ml of vaping liquid, regardless of nicotine strength.
Canada also applies excise duty to vaping products based on the quantity of vaping substance, with additional provincial duties possible under its coordinated framework.
Australia has taken a stricter regulatory route by limiting legal access to therapeutic vaping products through pharmacies under its national vaping reforms.
The UAE has taken a different approach. Rather than introducing a pharmacy-only system or banning retail sales, it is adjusting the minimum excise value used for vape liquids within its existing tax framework.
Why It Matters?
For UAE residents, the practical takeaway is straightforward:
- Some vape liquids could cost more from September 1, 2026.
- The 100% excise tax already exists; the new rule changes the minimum value used to calculate it.
- Lower-priced e-liquids are likely to be most directly affected.
- Retail prices have not been fixed by the UAE Ministry of Finance and may vary between businesses.
- Retailers, importers and suppliers will need to adjust to the new tax calculation requirements.
For consumers, the next date to watch is September 1, when the new minimum excise price officially takes effect.
FAQs
When does the new UAE vape excise price start?
The minimum excise price of Dh1 per millilitre for vape liquids takes effect across the UAE on September 1, 2026.
Is the UAE introducing a new 100% tax on vape liquids?
No. Vape liquids and electronic smoking devices are already subject to a 100% excise tax. The new decision changes the minimum value used for calculating that tax in certain cases.
Will all vape products become more expensive in the UAE?
Not necessarily. The greatest impact is expected on products priced below Dh1 per ml. Final retail prices will depend on individual suppliers and retailers.
Who announced the new UAE vape tax rule?
The UAE Ministry of Finance announced the decision, while the Federal Tax Authority administers the country’s excise tax system.
Why has the UAE introduced a minimum excise price for e-liquids?
The Ministry of Finance said the measure aims to enhance the effectiveness of excise tax implementation and support the continued development of the UAE’s excise tax framework.
The UAE’s new Dh1-per-ml minimum excise price is a confirmed change to the country’s vape tax framework and takes effect on September 1, 2026. While the existing 100% excise tax remains unchanged, lower-priced e-liquids may face a higher taxable value and, in some cases, higher retail prices.
The longer-term impact on vaping habits and the retail market has not yet been established and will become clearer after the new rules take effect.
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