The UAE will set a minimum taxable price for liquids used in electronic cigarettes and devices at AED 1 per milliliter starting September 1, 2026, in a move aimed at unifying tax calculation methods and enhancing compliance with tax regulations.

According to the new decision by the Ministry of Finance, this figure is the "minimum taxable price" and is distinct from the minimum retail price. This means that even if a product is sold at a lower price, the base for tax calculation cannot be less than AED 1 per milliliter.

For instance, the minimum taxable value for a 10ml bottle will be AED 10. This figure is set at AED 30 and AED 60 for 30ml and 60ml bottles, respectively.

The Ministry of Finance stated that this decision does not change the current minimum taxable prices for other tobacco products. Existing regulations for cigarettes, waterpipe tobacco, ready-to-use tobacco products, and similar goods will remain in effect.

According to the ministry, the new regulations aim to synchronize the excise tax system with market developments and apply uniform standards across various tobacco product groups and electronic smoking devices. This measure is also intended to limit practices that may reduce the effectiveness of tax implementation.

The UAE currently imposes a 100 percent excise tax on tobacco products covered by this system. Starting in September 2026, the new minimum price for e-cigarette liquids will be integrated into this framework.