All residents the UAE who use e‑cigarettes or purchase vape liquids should prepare for a new tax rule that will take effect soon. The UAE government has issued an updated excise regulation that fixes the minimum tax rate for e‑cigarette liquids at AED 1 per milliliter, regardless of nicotine content.
The rule is part of Cabinet Decision No. 137 of 2026, which updates excise pricing for tobacco products and liquids used in electronic smoking devices.
What the New Rule Says
Under the updated excise framework, the UAE will apply a minimum excise price to several categories of smoking products. For e‑cigarette liquids, the government has set a fixed rate of AED 1 per ml, ensuring uniform taxation across all brands and formulations. This applies to all vape liquids, whether they contain nicotine or not.
The decision also updates minimum excise prices for other tobacco products, including:
- AED 0.4 per cigarette
- AED 0.1 per gram of water‑pipe tobacco and similar products These changes are part of the UAE’s broader effort to regulate smoking products and align excise rules with GCC standards.
Why the UAE Introduced the Change
The UAE has been tightening regulations on tobacco and electronic smoking devices since the implementation of excise tax laws in 2017. The updated rule aims to:
- Standardize pricing across all smoking products
- Reduce ambiguity in tax calculations
- Strengthen public health policies
- Ensure compliance with GCC excise agreements
Earlier excise rules already imposed 100% tax on electronic smoking devices and their liquids. The new fixed minimum excise price ensures that all products meet a consistent tax threshold.
Impact on UAE Residents and OFWs
For e-cigarette consumers in the UAE, this means vape liquids may become more expensive, especially for larger bottles. Retailers will adjust prices to comply with the minimum excise price, and consumers should expect stricter enforcement beginning September 1, 2026.
