What is the excise tax rate on tobacco?

Article 12 – Tax Rates For the purposes of Article 3 of the Decree-Law, Tax shall apply to the Excise Goods stipulated under Article 2 of the Decision pursuant to the following rates: Excise Good Tax Rate Tobacco and tobacco products 100% Liquids used in electronic smoking devices and tools 100% Electronic smoking devices and tools 100% Carbonated drinks 50% Energy drinks 100% Sweetened drinks 50%

Article 2 – Excise Price for Tobacco Products The Excise Price for Tobacco Products shall be determined pursuant to Article 13 of the Cabinet Decision No. 52 of 2019 above mentioned, and shall be no less than: a. 0.4 Dirham per cigarette, b. 0.1 Dirham per 1 gram of water pipe tobacco, or ready to use tobacco or other similar products.

Article 3 – Tax Calculation2 A Cabinet Decision shall be issued at the suggestion of the Minister to determine the following: 1. The tax rates that shall be imposed on Excise Goods as a percentage of the Excise 2 Article amended as per Federal Decree-Law No. 7 of 2025 Federal Decree-Law No. 7 of 2017 and its amendments – As published by the Ministry of Finance 4 Price, provided that the tax rate imposed on such goods shall not exceed (200%) of the Excise Price of the goods. 2. The tax rates that shall be imposed on Excise Goods as a specific amount per unit of measurement, provided that such amount shall not exceed AED 100 (one hundred Dirhams) per unit of measurement. 3. The unit of measurement, the basis of imposing the Tax as a specific amount, and the method of calculating the Excise Price.

This is not an official translation: Implementation of the Cabinet Decision No. 55 of 2019 On Excise Price for Tobacco Products Ministerial Decision No. 237 of 2019 Date of issue: 29 September 2019 Minister of Finance has decided: - Having reviewed the Constitution; - Federal Decree-Law No. 7 of 2017 on Excise Tax; - Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal DecreeLaw No. 7 of 2017 on Excise Tax; - Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price; - Cabinet Decision No. 55 of 2019 on Excise Price for Tobacco Products; Article 1 – Implementation The provisions of the Cabinet Decision No. 55 of 2019 shall come into effect as of 1 December 2019. Ministerial Decision No. 237 of 2019- Issue Date: 29th of September 2019 – Unofficial translation 1