https://www.timeoutdubai.com/: The United Arab Emirates is set to introduce a brand-new tax on vapes on Tuesday September 1.

The Ministry of Finance is rolling out a new excise price of Dhs1 per millilitre for liquids used in electronic smoking devices and tools.

It will expand on an existing tax on vapes and e-liquids, which was first introduced back in 2019, and establishes an additional payment for those who vape across the UAE.

However, the existing minimum excise price will continue to apply to cigarettes, water pipe tobacco, ready-to-use tobacco products and similar products.

The decision from the Ministry of Finance aims to ensure the consistent application of unified standards across all categories of tobacco and electronic smoking products.

Excise taxes are indirect taxes on specific goods or services, and were previously introduced at a flat rate of 100 percent on all tobacco products, electronic smoking devices and liquids used in such devices and tools back in 2019.

The UAE Government levies excise taxes on unhealthy and harmful commodities with the aim of reducing consumption and also raising funds for public services.

Factories or importers pay the applicable excise tax on goods to the Federal Tax Authority, retailers then stock goods with duty included in the price, which means that consumers will pay more at the till for excisable goods.

Consumers also currently pay excise taxes on energy drinks, carbonated drinks and any products with added sugar or other sweeteners.

On the new tax, the Ministry of Finance said: “The Decision aims to keep pace with developments in the market for excise goods and ensure the consistent application of unified standards across all categories of tobacco and electronic smoking products.”