The UAE e-cigarette tax gains a floor on September 1: a minimum excise price of Dh1 per millilitre for liquids used in electronic smoking devices. The Ministry of Finance decision sets the base on which the 100 per cent excise rate is calculated, so vape liquids can no longer be valued below Dh1/ml for tax purposes.
The ministry says the measure is intended to keep pace with the market for excise goods and to apply consistent standards across tobacco and electronic smoking products.
UAE e-cigarette tax: what changes and what does not
The new minimum price applies only to liquids used in electronic smoking devices, Khaleej Times confirms. The existing minimum excise price framework for cigarettes, shisha, ready-to-use tobacco and similar products is unchanged, and so is the 100 per cent rate on tobacco products overall.
What the excise floor means for vape prices
The practical effect is on the cheap end of the market. Budget e-liquids sold below Dh1/ml previously had their tax computed on the actual price; from September the calculation starts at the floor. For vapers, the change is most likely to show up as a price rise on low-cost liquids, while premium products already above the threshold are untouched.
The decision also tightens enforcement: the ministry frames it as support for tax compliance and a limit on practices that could affect how excise is implemented. It follows a year in which the UAE’s corporate tax regime was adjusted for small businesses and sits alongside the broader picture of how the country taxes the tobacco and smoking categories.
What is the new e-cigarette excise price in the UAE?
From September 1, 2026, liquids used in electronic smoking devices have a minimum excise price of Dh1 per millilitre. Excise is calculated on that floor rather than a lower actual price.
Does the new minimum price affect cigarettes or shisha?
No. The existing minimum excise price framework for cigarettes, water pipe tobacco (shisha), ready-to-use tobacco and similar products is unchanged, as is the 100 per cent excise rate on tobacco products.
Will vape prices rise in the UAE?
The change is most likely to lift the price of budget e-liquids previously sold below Dh1/ml, since their tax base now starts at the floor. Premium liquids already priced above the threshold are unaffected.
