Which products are subject to excise tax?

Answered by TI from the Federal Tax Authority’s own law · 25 September 2026. Guidance, not tax advice: rely on the official text.

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Excise tax applies to tobacco and tobacco products, electronic smoking devices and their liquids, and energy and sweetened drinks. Carbonated drinks were previously taxed too, but that category has since been removed from the list.

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The detail

Under Article 2 of Federal Decree-Law No. 7 of 2017, excise tax applies to the goods specified by Cabinet Decision. The current list under Cabinet Decision No. 197 of 2025 covers tobacco and tobacco products, e-smoking liquids, e-smoking devices and tools, energy drinks, and sweetened drinks. The earlier Cabinet Decision No. 52 of 2019 also included carbonated drinks, which is no longer part of the current schedule.1 2 3

What the law says

Excise tax is imposed on the production, import, release from a designated zone, or stockpiling of goods specified by Cabinet Decision as Excise Goods.1
Cabinet Decision No. 197 of 2025 lists the current Excise Goods as tobacco and tobacco products, e-smoking liquids, e-smoking devices, energy drinks, and sweetened drinks.2
The predecessor Cabinet Decision No. 52 of 2019 additionally included carbonated drinks in the Excise Goods list.3

What it depends on

Confirm which Cabinet Decision is in force for the relevant tax period, as the list of Excise Goods changed between the 2019 and 2025 decisions.2 3
Certain tobacco products (cigarettes, electrically-heated cigarettes, water pipe tobacco) are additionally subject to the digital tax stamp/marking scheme, though this does not change their excise liability itself.4

Check before you rely on it

Check which Cabinet Decision (52/2019 or 197/2025) applies to your transaction date
Confirm whether your product falls within one of the listed categories (tobacco, e-smoking goods, energy or sweetened drinks)
If dealing with tobacco products, check if the marking/tax stamp scheme applies

Sources (4) — read the official text

1Excise Tax LawArticle 2Law

Article 2 - Application and Scope of Tax

Read the article
Article 2 - Application and Scope of Tax 1. The provisions of this Decree-Law shall apply to the Excise Goods specified by a Cabinet Decision at the suggestion of the Minister. 2. Tax shall be imposed on the following activities related to Excise Goods: a. Production of Excise Goods in the State, where such production was in the course of doing business. b. Import of Excise Goods. c. Release of Excise Goods from a Designated Zone. d. Stockpiling of Excise Goods in the State, where such Stockpiling was in the course of doing business.

Official PDF, p. 4Captured from the FTA website on 9 Sep 2026Found by following a reference in another source
2Cabinet Decision 197/2025Article 2Cabinet Decision

Article 2 – Excise Goods

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Article 2 – Excise Goods For the purposes of Article 2 of the Decree-Law, Tax shall be applicable on the following Excise Goods: 1. Tobacco and tobacco products. 2. Liquids used in electronic smoking devices and tools. 3. Electronic smoking devices and tools. 4. Energy drinks. 5. Sweetened drinks.

Official PDF, p. 2Captured from the FTA website on 9 Sep 2026
3Cabinet Decision 52/2019Article 2Cabinet Decision

Article 2 – Excise Goods

Read the article
Article 2 – Excise Goods For the purposes of Article 2 of the Decree-Law, Tax shall be applicable on the following Excise Goods: 1. Tobacco and tobacco products 2. Liquids used in electronic smoking devices and tools 3. Electronic smoking devices and tools 4. Carbonated drinks 5. Energy drinks 6. Sweetened drinks Cabinet Decision No. 52 of 2019 and its amendments – As published by the Ministry of Finance 2

Official PDF, p. 2Captured from the FTA website on 9 Sep 2026
4FTA Decision 3/2021Article 1FTA Decision

Article 1 – Designated Excise Goods

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Article 1 – Designated Excise Goods For the purposes of this Decision, “Designated Excise Goods” shall mean all of the following: 1. All types of cigarettes; 2. Electrically-heated cigarettes; and 3. “Water pipe tobacco”, which is any product being imported, produced, or cultivated in the State that could be classified as “Water pipe tobacco” according to Schedule 24 of the Unified Customs Tariff for the GCC States.

Official PDF, p. 2Captured from the FTA website on 9 Sep 2026

Helpful?

What the law says:
- Excise tax is imposed on the production, import, release from a designated zone, or stockpiling of goods specified by Cabinet Decision as Excise Goods. [1]
- Cabinet Decision No. 197 of 2025 lists the current Excise Goods as tobacco and tobacco products, e-smoking liquids, e-smoking devices, energy drinks, and sweetened drinks. [2]
- The predecessor Cabinet Decision No. 52 of 2019 additionally included carbonated drinks in the Excise Goods list. [3]

What it depends on:
- Confirm which Cabinet Decision is in force for the relevant tax period, as the list of Excise Goods changed between the 2019 and 2025 decisions. [2, 3]
- Certain tobacco products (cigarettes, electrically-heated cigarettes, water pipe tobacco) are additionally subject to the digital tax stamp/marking scheme, though this does not change their excise liability itself. [4]

Check before you rely on it:
- Check which Cabinet Decision (52/2019 or 197/2025) applies to your transaction date
- Confirm whether your product falls within one of the listed categories (tobacco, e-smoking goods, energy or sweetened drinks)
- If dealing with tobacco products, check if the marking/tax stamp scheme applies

Sources:
1. Excise Tax Law — Article 2
2. Cabinet Decision 197/2025 — Article 2
3. Cabinet Decision 52/2019 — Article 2
4. FTA Decision 3/2021 — Article 1

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

Which products are subject to excise tax?

The detail

What the law says

What it depends on

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