UAE Implements Minimum Excise Price for Vape Liquids Starting September 2026
What happened
The UAE Ministry of Finance will enforce a minimum excise price of AED 1 per millilitre on vape liquids starting September 1, 2026.
The Context
- Tax Compliance: This new measure aims to strengthen tax compliance and close pricing loopholes in the vaping market.
- Health Focus: The initiative is part of a broader strategy to discourage consumption of vaping products, particularly among youth.
- Market Evolution: It builds on a 100% excise tax regime established in December 2019, adapting to market changes to prevent underpricing.
The Number
— This minimum excise price threshold will trigger a 100% tax on the higher retail price, significantly impacting consumer costs and retailer pricing strategies.
Takeaway
As the vaping landscape evolves, anticipate increased prices and potential shifts toward unregulated markets.
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"The National reflects Emirati policy perspectives while maintaining international editorial standards."
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