From 1 September 2026, the UAE introduces a minimum excise price of AED1 per millilitre for liquids used in electronic smoking devices and tools. The rule matters because it is easy to misunderstand: it is a measure used to calculate excise tax, not a government-set minimum retail price for shoppers. It affects how the tax framework values the relevant liquids, while a store’s final selling price can still reflect its own commercial decisions and applicable costs.
The official Ministry of Finance announcement sets out the AED1-per-ml measure and effective date. The Federal Tax Authority’s Excise Tax Guide explains that liquids used in electronic smoking devices are subject to excise tax at 100%. This article is a plain-language guide, not legal or tax advice; businesses should use official guidance and professional advice for their own obligations.
What changes on 1 September?
The Ministry of Finance says the new minimum excise price is AED1 for every millilitre of liquid used in electronic smoking devices and tools. A 10ml product therefore has a minimum excise price of AED10 for tax-calculation purposes; a 30ml product has AED30; and a 60ml product has AED60. That is not the same as saying every 10ml product must be sold to a customer for AED10. It is a tax valuation rule.
For shoppers, the useful takeaway is to avoid drawing instant conclusions from shelf prices. Prices can change for many reasons, including product type, tax treatment, import costs, retailer pricing and promotions. For retailers and importers, the important step is to make sure product records, tax calculations and pricing communications do not confuse a minimum excise price with a fixed retail price.
Minimum excise price examples
| Liquid volume | Minimum excise price at AED1/ml | What it means |
|---|---|---|
| 10ml | AED10 | A minimum value for calculating applicable excise tax, not a compulsory shelf price. |
| 30ml | AED30 | Use the stated volume to calculate the minimum excise price. |
| 60ml | AED60 | The rule scales with millilitres. |
| Other volumes | AED1 multiplied by the number of millilitres | Businesses should validate their own tax treatment against official guidance. |
What consumers should do
Consumers do not need to calculate a retailer’s tax return. The practical job is simpler: buy from legitimate sellers, keep a receipt if you need it, and ask the seller to explain the final price if a promotion or product description is unclear. Do not treat social-media claims about a “new fixed price” as official information. The government announcement is specific about a minimum excise price; it does not announce a universal mandatory retail price.
- Read product labels and the stated liquid volume before comparing prices.
- Keep purchase records where useful for returns, complaints or expense documentation.
- Ask the retailer for clarification if a price claim refers to tax or a new rule.
- Use official Ministry of Finance and Federal Tax Authority information for rule updates.
- Avoid assuming that a tax valuation rule applies identically to every retail transaction.
What businesses should review
Importers, producers, stockpilers and businesses releasing excise goods for consumption have responsibilities under the UAE excise-tax framework. Affected businesses should review product classifications, millilitre information, tax calculations, stock records and the wording used by sales teams. If an item or transaction is complex, a qualified tax professional should be involved. Clear internal communication matters: an inaccurate claim that the government has imposed a retail price can mislead customers and create avoidable compliance risk.
For broader practical UAE guidance, our UAE eInvoicing guide, small-business relief guide, Dubai Customs support guide, Dubai SME guide, UAE gratuity guide and Dubai visa-status guide cover other useful administrative topics.
For simple price comparisons, check the stated product volume and keep the receipt. Retailers should use clear language when discussing tax treatment and should refer complex product questions to current official guidance.
FAQs
When does the new minimum excise price take effect?
The Ministry of Finance says it takes effect on 1 September 2026.
Is AED1 per ml a fixed shop price?
No. It is a minimum excise price used for tax calculation, not a government-mandated minimum retail price.
How is the minimum price worked out?
Multiply the volume in millilitres by AED1. For example, 30ml equals AED30 as the minimum excise price.
Does the rule apply only to nicotine liquids?
Use the official Ministry and FTA documents to determine whether a particular product is within scope. Businesses should not rely on a short article for classification decisions.
Where can businesses check the official rules?
Start with the Ministry of Finance announcement and the Federal Tax Authority’s Excise Tax Guide, then seek professional advice when necessary.
