The UAE’s incoming tax on e-cigarette and vape liquids will deter young people from picking up the habit while encouraging current users to reduce their consumption, according to doctors, smokers and retailers.
A minimum excise price of Dh1 per millilitre for the liquids will take effect in the UAE on September 1 as part of the country's “sin tax” rules. This means products retailing below that threshold will now be taxed as though they had reached it.
From September, a 60ml bottle priced at Dh40 ($10.89) will be taxed as if it costs Dh60 ($16.34), with the existing 100 per cent excise rate applied on top.
Using pricing to deter vaping will help show it is not a safe alternative to cigarette smoking, said Dr Rachel Kaminski, a pulmonologist at Saudi German Hospital in Dubai.
“The standpoint is a good starting point,” she told The National. “The main groups this will positively influence are young people new to vaping and the lower socioeconomic classes.”
A global study carried out in 2024 found that three-quarters of smokers believed vaping was at least as harmful to their health as cigarettes.
Vapers reconsider
Dr Kaminski believes the new tax might also make it less appealing for cigarette smokers to switch to vaping. For some users in the UAE, the September deadline is already prompting the kind of reaction policymakers will be hoping for.
“Maybe this will finally be the reason I quit,” said Vinita Kullai, a vaper based in Dubai. “I've wanted to cut back for a while, so if vaping gets noticeably pricier, that extra pinch might be the push I need. Whether I'd quit immediately is another story, but it would definitely make me think twice every time I go to buy one.”
Others are approaching it as a financial inconvenience rather than a reason to stop. Alina Husakova says she plans to build up a small stock before the new rules take effect and then reassess.
“My first reaction was that I'm not really surprised,” she said. “Everything is becoming more expensive, and vaping is obviously not something the government wants to encourage. I understand the logic behind it, although as someone who vapes, of course I'm not particularly excited about paying more.”
She does not expect the increase to end her habit. “It might make me more conscious of how much I'm spending or even encourage me to cut down a little, but I don't see myself stopping just because of the tax. Plus, it's a good alternative to cigarettes.”
Grey market risk
Falah Muhammed, manager of Yen Vape in the UAE, accepts the public health rationale, but it concerned about other aspects of the price rise.
“If the price gap between legitimate and unofficial products becomes too large, that could create more incentive for consumers to seek products from unregulated sellers,” he told The National.
Yen Vape plans to absorb part of the increase rather than pass it straight to customers, at least initially. “Higher costs may cause customers to buy less frequently, switch to lower-priced products, or become more price-sensitive,” Mr Muhammed said.
“Our intention would be to keep prices as competitive as possible rather than automatically passing every additional cost on to the customer,” he added.
“We would first look at our margins, supplier pricing and purchasing arrangements. Where we can absorb part of an increase, we will – but it may not be possible for retailers to absorb the full impact indefinitely.”
Other countries
Countries that have taxed tobacco products heavily have seen consumption fall over time, even if only through less frequent use rather than people quitting completely.
On average, raising tobacco taxes to increase prices by 10 per cent would reduce tobacco use by 4 per cent in high-income countries and by about 5 per cent in low- and middle-income countries, according to the World Health Organisation.
The UK introduced a dedicated vape duty in its 2024 Autumn Budget, taking effect this October. It is structured by nicotine strength, at £2.20 per 10ml for lower concentrations, rising to £4.20 for the highest concentration.
British health authorities said the levy was designed to deter young people from taking up vaping while keeping the cost below the equivalent cigarette tax burden, preserving the product's value as a quitting tool for adult smokers.
Canada took a comparable approach in 2022, introducing a federal duty per millilitre that provinces could opt in to double.
Australia moved in 2024 to ban recreational vape sales entirely, requiring users to obtain products through pharmacies with a prescription.
New Zealand, which had embraced vaping as a cessation aid, reversed course and imposed tighter age controls alongside a new levy after data showed teenage uptake was outpacing use among adult smokers.
In the UAE, vaping and e-cigarette liquids are among a number of tobacco and smoking-related products subject to a 100 per cent excise tax. The ministry said existing excise prices for cigarettes, water pipe tobacco and ready-to-use tobacco products would remain unchanged.
