HTP Tax Gap Map: United Arab Emirates | Campaign for Tobacco-Free Kids
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Tax Gap of Heated Tobacco Products in the United Arab Emirates

The UAE government implemented the Excise Tax Law in the last quarter of 2017. The rates were set at 100% of the “excise price” for all tobacco products. The law was amended in 2019 to (Cabinet decision No. 52 of 2019) to include heated tobacco. The rate is the same for all tobacco or nicotine products and electronic devices. Therefore, both heated tobacco and devices are taxed at 100% of the “excise price.” In addition, all tobacco and nicotine products, and taxable devices and tools, require a digital tax stamp. The decision came into effect starting January 1st, 2020, and remains in effect.

The Cabinet Decision states the methods for calculating the excise price (Art 13 of the Cabinet decision, and Art 3 or the Decree Law). The excise price should be the higher of (i) the price published by the Authority for Excise Products in a “standard price” list, or (ii) the designated retail sale price for the good, less the excise tax included therein. The Decision also states that “for excisable goods taxable at a rate of 100% of the excise price, which is equivalent to the retail sales price (RSP) before excise and value-added tax (VAT) (Art 14).

Our methodology to calculate the “designated retail sale price”, the “excise price”, and the applicable tax rate is described in the tax maps’ methodology.

The tax in in accordance with the “Excise Tax Agreement of the States of the Gulf Cooperation Council.”



Last updated Sept. 1, 2023