UAE minimum Excise Price for electronic smoking liquids takes effect on 1 September 2026
Reviewed 2026-08-25 · Editorial responsibility: Valusage Business Advisors Editorial Practice
Direct answer
From 1 September 2026, the UAE introduces a minimum Excise Price of AED 1 per millilitre for liquids used in electronic smoking devices and tools. Businesses handling affected products should review product data, tax determination, pricing controls and evidence before the effective date.
Who should assess the impact
Affected teams and businesses
- Businesses importing, manufacturing, storing or supplying affected electronic smoking liquids.
- Finance and tax teams responsible for Excise Tax data, calculations and returns.
- Operations and systems owners responsible for product volume, pricing and the 1 September 2026 cut-off.
Official source facts
What the announcement establishes
- The minimum Excise Price for affected liquids is AED 1 per millilitre.
- The decision enters into force on 1 September 2026.
- The Ministry states that existing minimum Excise Prices continue for cigarettes, water-pipe tobacco, ready-to-use tobacco products and similar products.
- The Ministry states that tobacco products covered by the Excise Tax regime are subject to a 100% Excise Tax rate.
Management response
What to review next
- 01Identify affected product codes, pack sizes and liquid volumes.
- 02Check tax-master data and the basis used to calculate Excise Tax from the effective date.
- 03Review pricing, inventory cut-off and system-change ownership before 1 September 2026.
- 04Retain product and calculation evidence that supports the applied Excise Price.
Valusage analysis
Practical implications for the finance and tax file
The change creates a specific data and system-readiness question for importers, manufacturers, warehouse keepers and other businesses handling affected goods. The required work depends on the business model and the products in scope.
Valusage's summary is operational guidance, not a substitute for the Cabinet Decision or an entity-specific tax determination. Businesses should use the official legislation and current FTA guidance as the controlling sources.
Related Valusage guidance
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Professional boundary
This original summary is general information. It is not a filing opinion, legal advice or a guarantee of authority acceptance, tax treatment, compliance or commercial outcome.
Review the related service →When does the new minimum Excise Price take effect?+
The Ministry of Finance states that the decision takes effect on 1 September 2026.
What minimum Excise Price applies to affected electronic smoking liquids?+
The Ministry of Finance states that the minimum Excise Price is AED 1 per millilitre for liquids used in electronic smoking devices and tools.
What should affected businesses review before the effective date?+
They should identify in-scope products and volumes, check tax-master data and calculations, assign system and inventory cut-off responsibilities, and retain supporting evidence.
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