{"id":8740,"date":"2025-02-04T12:26:41","date_gmt":"2025-02-04T12:26:41","guid":{"rendered":"https:\/\/arnifi.com\/blog\/?p=8740"},"modified":"2025-07-07T14:33:59","modified_gmt":"2025-07-07T10:33:59","slug":"uae-excise-tax","status":"publish","type":"post","link":"https:\/\/arnifi.com\/blog\/uae-excise-tax\/","title":{"rendered":"Ministerial Decision No. 1 of 2025: A Major Step i..."},"content":{"rendered":"
\n
\"\"<\/figure><\/div>\n\n\n

Overview:<\/h2>\n\n\n\n

On January 3, 2025, the UAE Ministry of Finance issued Ministerial Decision No. 1 of 2025, updating excise tax regulations. The decision refines existing tax guidelines, considering previous laws such as Federal Decree-Law No. 7 of 2017 and Cabinet Decision No. 52 of 2019. Key changes include revised excise tax rules for electronic smoking devices, related liquids, and consumables like concentrates, powders, and gels. This blog focuses on the principal changes, covering taxation for e-liquids for electronic cigarettes, price adjustments in taxable goods, and an overturn of some provisions that previously were in force.<\/p>\n\n\n\n

Excise Tax on Liquids for Electronic Smoking Devices<\/h2>\n\n\n\n

Ministerial Decision No. 1 of 2025 amends the excise tax law for liquids used in electronic smoking devices, regardless of their nicotine content. To achieve uniformity, the decision requires the use of Harmonized System (HS) codes from Chapter 24 of the GCC classification system. This will bring UAE regulations in line with the general GCC standards, making trade easier and ensuring that taxation is fair. The excise tax will be imposed on the following electronic smoking products: e-cigarettes, electronic shisha, and heated tobacco devices.<\/p>\n\n\n\n

Excise Pricing for Concentrates, Powders, Gels, and Extracts<\/h2>\n\n\n\n

The order also introduces new excise pricing requirements for concentrates, powders, gels, and extracts that are used to manufacture carbonated, energy, or sweetened beverages. The excise price is the higher of:<\/p>\n\n\n\n