Introduction

The United Arab Emirates (UAE) has emerged as a major market for e-cigarettes and vaping products. Yet, with the country’s firm stance on public health and taxation, many are asking: Will the vape tax increase in UAE return in 2025 or beyond?

This question matters not only to consumers but also to local vape retailers, importers, and manufacturers. After all, taxes on tobacco alternatives like vape products can reshape the entire industry overnight.

In this article, we’ll explore the history of vape taxation in the UAE, why future increases are being discussed, and what stakeholders should expect in the near future.

A Look Back: Vape Tax History in the UAE

The UAE was one of the first countries in the region to legalize and regulate vaping products. But with legalization came taxation.

Initial Excise Implementation

In 2019, the UAE introduced a 100% excise tax on electronic smoking devices and liquids, classifying them under the same umbrella as tobacco products. This move instantly doubled retail prices for all vape items.

Market Response to the Tax

Despite the high cost, vape use continued to rise—driven by smokers seeking harm-reduction options and ex-smokers turning to vaping as an alternative.

Retailers adapted, and the black market shrank, thanks to regulated sales and better product quality control. Still, the price barrier remained an issue for many users.

Why Is a New Vape Tax Increase in UAE Being Considered?

The potential for a vape tax increase in UAE is being discussed again—and for several key reasons.

Health Concerns and Youth Usage

Government agencies are concerned about vaping’s popularity among young adults and teenagers. Even with age restrictions in place, access remains a loophole in some areas.

Raising taxes could act as a deterrent, especially for first-time users.

Aligning with Global Tax Trends

Many countries, including those in Europe and Southeast Asia, are raising taxes on vaping products. The idea is to match or exceed taxes on traditional tobacco, to prevent vaping from becoming a “cheaper” alternative that still poses health risks.

Increasing Non-Oil Revenue

The UAE has been actively diversifying its economy. Health-related excise taxes (like those on sugary drinks, tobacco, and vapes) contribute significantly to non-oil revenue streams.

An increase in vape tax fits within this broader economic strategy.

Possible Impact of a Vape Tax Increase in UAE

A new vape tax increase could affect multiple sectors and individuals in different ways.

For Consumers

• Higher costs would discourage casual users or those new to vaping.
• Ex-smokers who switched to vaping to reduce harm may feel penalized.
• Some users may turn to unregulated markets for cheaper alternatives.

For Retailers and Distributors

• Increased taxes could shrink profit margins.
• Demand may decline, especially for premium or imported products.
• Businesses might see more returns, expired stock, or reduced foot traffic.

For the Government

• Short-term tax revenue gains are likely.
• Long-term outcomes depend on whether the policy reduces vaping rates or merely shifts behavior underground. Vape Tax Increase UAE

Expert Opinions on Vape Tax Increase in UAE

Health professionals, economists, and industry insiders have weighed in on the subject. Their insights highlight the complexity of vaping regulation.

Health Experts

Public health experts often support higher vape taxes. Their main concern is to limit youth access and reduce nicotine addiction among non-smokers.

They argue that high taxes discourage experimentation and reinforce the perception of risk.

Economists

From a fiscal point of view, excise taxes work well when demand is inelastic. However, economists caution against overtaxing harm-reduction tools if the goal is to reduce overall smoking rates.

They suggest balancing tax hikes with public education and cessation support.

Industry Leaders

Retailers and vape brand owners are generally against tax increases. They argue that:

• Vaping should not be treated the same as combustible tobacco.
• Excessive taxation could reverse progress in reducing cigarette use.
• Consumers may revert to more harmful smoking behaviors.

Could UAE Adopt a Tiered Tax System?

Some countries have introduced tiered tax models, where products with lower nicotine content are taxed less than high-nicotine or flavored variants.

Would the UAE consider this model?

It’s possible. A tiered system could:

• Encourage the use of lower-risk products.
• Help adult users quit smoking.
• Still meet tax revenue goals while aligning with public health initiatives.

What Are the Alternatives to Vape Tax Hikes?

Instead of—or in addition to—raising taxes, the government might consider:

• Stronger age verification at points of sale
• Limiting advertising and online promotions
• Expanding public awareness campaigns about vaping risks
• Creating cessation programs for nicotine dependence

Such alternatives could address health goals without punishing responsible adult users.

What Vapers in UAE Can Do to Prepare

Whether a vape tax increase in UAE is announced this year or later, users and businesses can take proactive steps.

Stay Informed

Follow announcements from the UAE Federal Tax Authority (FTA) and Ministry of Health.

Budget Accordingly

If you’re a regular vaper, stocking up before a tax hike might help. Retailers may offer better deals ahead of any pricing changes.

Support Evidence-Based Policy

Participate in public forums, petitions, or surveys. Share your experience if you’ve quit smoking through vaping. Your voice can influence future regulation.

Will the Vape Tax Increase in UAE Return?

It’s likely that discussions around the vape tax increase in UAE will intensify in the coming months. With global trends leaning toward stricter regulation and higher excise duties, the UAE may follow suit to achieve health and fiscal goals.

Still, a balanced approach—one that protects public health without punishing harm-reduction efforts—is key.

Stay updated, stay responsible, and be part of the conversation.

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FAQs

Is there a vape tax in the UAE currently?

Yes, a 100% excise tax on vape devices and e-liquids has been in place since 2019.

Why might the UAE increase vape taxes again?

To discourage youth vaping, align with global policies, and boost non-oil revenues.

Will a vape tax increase in UAE affect all products?

If implemented, the increase would likely apply to all vape products, including devices, pods, and liquids.

Can I still buy vape products legally in the UAE?

Yes, licensed stores and e-commerce platforms can legally sell approved vape products in the UAE.

How can I prepare for a vape tax increase?

Stay informed, consider buying in advance, and participate in regulatory discussions as a concerned consumer.