Compliance
Excise Price Minimums: What UAE Businesses Should Know Starting September 1, 2026
From September 1, 2026 UAE will impose a minimum excise price of AED 1 per ml on smoking-device liquids—here’s how importers, retailers, and manufacturers can stay compliant.
By NomadicTax Research Team • 5-8 min read • September 7, 2026
## What the New Excise Pricing Rule Entails
On **August 6, 2026**, the UAE Ministry of Finance issued a decision (Cabinet Decision No. 137 of 2026) introducing a **minimum excise price** for **liquids used in electronic smoking devices and tools**. Also, this applies alongside existing minimums for cigarettes, shisha tobacco, and similar products. The new floor price is set at **AED 1 per millilitre** of liquid. The rule comes into force **1 September 2026**. ([mof.gov.ae](https://mof.gov.ae/ar/news/ministry-of-finance-announces-decision-introduces-a-minimum-excise-price-for-liquids-used-in-electronic-smoking-devices-effective-1-september-2026/?utm_source=openai))
**Impacts include:** manufacturers and importers must ensure prices meet or exceed the floor; retailers must not sell below; excise tax remains at **100%** for all tobacco products including e-liquids. ([mof.gov.ae](https://mof.gov.ae/ar/news/ministry-of-finance-announces-decision-introduces-a-minimum-excise-price-for-liquids-used-in-electronic-smoking-devices-effective-1-september-2026/?utm_source=openai))
## Areas Affected and Key Compliance Requirements
Affected entities include:
- Manufacturers or importers of e-liquids for vaping/electronic smoking tools
- Retailers selling those e-liquids
- Distributors, wholesalers, and online marketplaces handling these products
They must:
- Label clearly: volume in mls, price per ml must be correctly calculated to meet minimum
- Maintain records of supply and pricing policies, invoices to show no underpricing
- Adjust financial models: cost-plus pricing, discounts, promotions must avoid pricing under the floor
## Practical Example
A retailer imports a line of e-liquids of 10 ml bottles to sell at AED 9 per bottle. With the minimum excise set at AED 1/ml, the minimum excise-price for that bottle is **AED 10**. The retailer must either:
- increase the selling price to at least AED 10
- absorb cost adjustments to adjust margin
## Strategic Responses & Challenges
- **Review product portfolio**: Some e-liquids may be loss-leaders under old pricing—reevaluate margins or pull unprofitable SKUs.
- **Contract adjustments**: renegotiate with suppliers to reduce cost per ml or secure discounts so margins are preserved.
- **Compliance systems**: set up checks so product pricing is validated for each shipment, especially for imports with variable shipping or customs charges.
- **Avoiding misclassification**: ensure that product classification codes match those used in the excise legislation. Misclassifications can lead to underpricing risk.
## Longer-Term Considerations
- Categories may expand: new product types similar to e-liquids may be added
- Regulatory enforcement: inspections likely; penalties for non-compliance may include fines, seizure, or tax assessments
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Author: NomadicTax Research Team
Read Time: ~5 min