What is the excise price and how is it set?
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The excise price is whichever is higher: the standard price the tax authority publishes for that product, or the shop's declared retail price with the excise tax already in it stripped out. You don't set it yourself for most goods - it follows the authority's list or your declared retail price.
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The detail
Under Article 13 of Cabinet Decision No. 52 of 2019 (and the equivalent Article 11 of Cabinet Decision No. 197 of 2025), the Excise Price is the higher of (a) the FTA's published standard price for the good, or (b) the designated retail sales price less the excise tax embedded in it. For goods taxed at 100% of the Excise Price, the tax is deemed to be half of the designated retail price; for goods taxed at 50% (under the 2019 Decision), the tax is deemed to be one third of that price. Concentrates, powders, gels and extracts convertible into carbonated, energy or sweetened drinks follow a separate mechanism set by the Minister.12
What the law says
- The Excise Price is the higher of the FTA's published price list figure and the designated retail sales price net of the excise tax included in it.12
- To strip out the tax from the retail price, the tax is treated as one third of that price for 50%-rate goods and half of that price for 100%-rate goods.12
- A separate ministerial mechanism applies to the Excise Price of concentrates, powders, gels or extracts that can be mixed into carbonated, energy or sweetened drinks, using the declared designated selling price to the retailer.3
What it depends on
- Where no FTA standard price is published, the designated retail sales price (less embedded tax) determines the Excise Price.12
- For concentrates/powders/gels/extracts not covered by the special mechanism, the ordinary Article 13/11 calculation applies instead.3
- Taxable persons dealing with such concentrate-type goods must keep records evidencing the designated selling price, deductions and quantities sold.3
Check before you rely on it
- Check which excise tax rate (50% or 100%) applies to your specific good
- Confirm whether the FTA has published a standard price for that good
- If dealing in concentrates/powders/gels/extracts, check whether the special mechanism under Ministerial Decision No. 1 of 2025 applies
Note: Cabinet Decision No. 197 of 2025 appears to update the 2019 Decision, so confirm which version is in force for your transaction date.
Sources (3) — read the official text
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Article 13 – Excise Price
Read the article
Article 13 – Excise Price 1. Pursuant to Article 3 of the Decree-Law, the Excise Price shall be the higher of the following two prices: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if available; b. the designated retail sales price for the Excise Good, less the Tax included therein. 2. In order to deduct the value of Tax included within the designated retail sales price according to Paragraph (b) of Clause 1 of this Article, the following calculations should be used: a. For Excise Goods taxable at a rate of 50% of the Excise Price, the Tax shall be equivalent to one third of its designated retail sales price. Cabinet Decision No. 52 of 2019 and its amendments – As published by the Ministry of Finance 6 b. For Excise Goods taxable at a rate of 100% of the Excise Price, the Tax shall be equivalent to half of its designated retail sales price. 3. As an exception to the provision of paragraph (b) of Clause 1 of this Article, the Excise Price of concentrates, powders, gels or extracts referred to in this Decision shall be calculated in accordance with the mechanism specified by the Minister.
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Article 11 – Excise Price
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Article 11 – Excise Price 1. Pursuant to Article 3 of the Decree-Law, the Excise Price shall be the higher of the following two prices: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if available, b. the designated retail sales price for the Excise Good, less the Tax included therein. 2. In order to deduct the value of Tax included within the designated retail sales price Cabinet Decision No. 197 of 2025 – As published by the Ministry of Finance 6 according to Paragraph (b) of Clause 1 of this Article, for Excise Goods taxable at a rate of 100% of the Excise Price, the Tax shall be equivalent to half of its designated retail sales price. 3. As an exception to the provision of paragraph (b) of Clause 1 of this Article, the Excise Price of concentrates, powders, gels or extracts referred to in Clause 2 of Article 6 of this Decision shall be calculated in accordance with the mechanism specified by the Minister.
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Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts
Read the article
Article 3 – Excise Price for Concentrates, Powders, Gel and Extracts 1. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks by mixing such goods with another product by the retailer, shall be the higher of the following: a. the price published by the Authority for the Excise Good in a standard price list that it issues, if applicable; Ministerial Decision No. 1 of 2025 – As published by the Ministry of Finance 2 b. The Designated Selling Price for this Good to the retailer that is identified, and declared by the importer or producer in respect of this excise good before any discounts or offers, after deducting the Tax included therein in accordance with the mechanism provided for in Clause (2) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 2. For the purposes of implementing the mechanism referred to in paragraph (b) of clause (1) of this Article, the “Designated Selling Price” is the “Designated Retail Sales Price”. 3. The Excise Price of concentrates, powders, gel, or extracts that can be transformed into carbonated drinks, energy drinks or sweetened drinks, which are not referred to in Clause (1) of this Article, is the Excise Price calculated in accordance with Clause (1) of Article (13) of Cabinet Decision No. 52 of 2019 referred to above. 4. The Taxable Person shall keep the records required to evidence the “Designated Selling Price” of the excise good, and any deductions made thereon and the quantities sold.
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Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
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