UAE Revises Excise Tax Rules for Electronic Smoking Devices

Editorial Team – [2025] 172 taxmann.com 76 (Article)

The UAE Ministry of State for Financial Affairs issued Ministerial Decision No. 1 of 2025 on 3 January 2025, updating the excise tax framework for electronic smoking devices. This decision, effective immediately, replaces Ministerial Decision No. 236 of 2019 and introduces several key changes.

Under the revised framework, excise tax applies to all liquids used in electronic smoking devices, regardless of nicotine content. It also includes concentrates, powders, gels, and extracts that can be converted into taxable liquids by retailers. Additionally, the excise tax is determined by the higher of the tax authority’s listed price or the “Designated Selling Price” declared by importers or producers, with retailers required to maintain accurate pricing records to ensure compliance.

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