الشارقة 24 – وام:
In a significant move towards enhancing tax compliance, the UAE Ministry of Finance has announced the establishment of a minimum selective price for tobacco products and e-cigarette liquids. This decision aims to increase the efficiency of the application of selective tax laws across the nation, aligning with current market trends and ensuring consistent pricing standards..
New Pricing Regulations for Tobacco and E-Cigarette Products
The new regulation specifies that the minimum selective price will continue to apply to various tobacco products, including cigarette rolls, shisha tobacco, and ready-to-use tobacco, with the introduction of a new price threshold for liquids used in electronic smoking devices. Specifically, this threshold is set at one dirham per millilitre for e-cigarette liquids..
This regulation is set to take effect on 1 September 2026, marking a proactive step by the Ministry to adapt to developments in the market for selectively taxed products. The initiative aims to standardise the pricing framework across various tobacco and electronic smoking product categories, thereby promoting tax compliance and mitigating practices that could undermine the effectiveness of the selective tax application..
UAE’s Commitment to Selective Taxation
In the UAE, a selective tax of 100% is applied to all tobacco products covered by the selective tax system. This stringent taxation policy underlines the government’s commitment to regulating tobacco use while ensuring adherence to tax legislation across the nation. The recent changes are expected to further strengthen these efforts..