Legislation Details
- Full Title: Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price
- Law Type: Cabinet Resolution
- Law Number: No. (197) of 2025
- Issued Date: 24 Nov 2025
- Effective Date: 01 Jan 2026
- Official Gazette: No. 813
- Sector: Tax
- Status: Active
- Number of Articles: 46
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the imposition of excise tax on certain goods in the United Arab Emirates. It defines the scope of "excise goods" subject to the tax, specifies the applicable tax rates, and provides the methodology for calculating the excise price. The resolution aims to address public health concerns and generate additional revenue for the government. It is an important piece of legislation for businesses and individuals dealing with the specified excise goods in the UAE. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 1-15)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the imposition of excise tax on certain goods in the United Arab Emirates. It applies to the following categories of excise goods: tobacco and tobacco products, liquids used in electronic smoking devices and tools, electronic smoking devices and tools, energy drinks, and sweetened beverages. The purpose of the resolution is to address public health concerns and generate additional revenue for the government through the taxation of these goods. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 2)
What are the key definitions under this law?
The Cabinet Resolution provides the following key definitions:
- State: United Arab Emirates
- Authority: Federal Tax Authority
- Minister: Minister of Finance
- Tax: Excise Tax
- Decree by Law: Federal Decree by Law No. (7) of 2017 Regarding Excise Tax, as amended
- Excise Goods: Goods designated as subject to Tax pursuant to this resolution
- Taxable Person: Any person registered or required to register for Tax purposes pursuant to the Decree by Law
- Importer: The natural or legal person whose name appears as the importer of the Excise Goods on the date of importation for customs clearance purposes
- Excise Price: The price calculated in accordance with the provisions of this resolution
- Value Added Tax: A tax imposed on the import and supply of goods and services in accordance with the provisions of Federal Decree by Law No. (8) of 2017 Regarding Value Added Tax, as amended
- Milk: Animal milk, reconstituted milk, milk powder, yogurt (soured milk), whey, and reconstituted whey; excluding cream
- Milk Substitutes: A beverage used for all or most uses of milk as a substitute thereof, having a density similar to milk and containing one hundred twenty (120) milligrams of calcium per one hundred (100) milliliters, provided that it is extracted from legumes, grains, nuts, seeds, or any other type of plant, and does not contain gaseous components
(Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 1)
What are the main obligations and requirements?
The Cabinet Resolution imposes the following key obligations: 1. Taxable Persons must register for excise tax purposes in accordance with the Federal Decree by Law No. (7) of 2017 Regarding Excise Tax. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 1) 2. Importers must declare the proposed retail selling price of excise goods, which shall be the higher of the price declared by the Authority or the average retail selling price in the market. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 12) 3. Persons must submit laboratory reports acceptable to the Authority confirming the quantity of sugar and other sweeteners in sweetened beverages. Failure to do so will result in the highest tax rate being applied. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 13)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements under this Cabinet Resolution.
What rights and protections does this law provide?
The legislation does not explicitly mention any rights or protections provided under this Cabinet Resolution.
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution designates the following authorities and bodies responsible for enforcement: 1. The Federal Tax Authority is responsible for determining the necessary procedures to verify the classification of products as excise goods, adding products to the price list, and calculating the average retail selling price of goods in the market. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 13) 2. The Minister of Finance is responsible for issuing decisions to specify the customs codes for certain excise goods, as well as determining the mechanism for calculating the excise price of concentrates, powders, gels, or extracts. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 3, 4, 5, 11)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this Cabinet Resolution.
What fees, charges, or financial provisions are specified?
The Cabinet Resolution outlines the following financial provisions: 1. Excise tax rates are specified for various categories of excise goods, ranging from 0% to 100% of the excise price. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 10) 2. The excise price is calculated as the higher of the price declared by the Authority or the designated retail selling price, exclusive of value added tax. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 11) 3. For goods subject to 100% excise tax, the value of the tax is equal to one-half of the designated retail selling price. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 11)
What exemptions or exceptions apply?
The Cabinet Resolution provides the following exemptions and exceptions: 1. Products listed under Chapter (24) of the Unified Customs Tariff Schedule that are exclusively intended to assist in smoking cessation are not considered tobacco and tobacco products. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 3) 2. Beverages containing at least 75% milk or milk substitutes, infant formula, follow-up formula, baby food, and beverages intended for special dietary or medical uses are excluded from the definition of sweetened beverages. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 7) 3. Beverages containing alcohol are excluded from the definition of energy drinks and sweetened beverages. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 8)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms under this Cabinet Resolution.
What are the key deadlines and time limits?
The legislation does not mention any specific deadlines or time limits under this Cabinet Resolution.
How does this law interact with other UAE legislation?
The Cabinet Resolution references the following related UAE legislation: 1. Federal Law No. (1) of 1972 Regarding the Competences of the Ministries and the Powers of the Ministers, as amended 2. Federal Decree by Law No. (13) of 2016 Regarding the Establishment of the Federal Tax Authority, as amended 3. Federal Decree by Law No. (7) of 2017 Regarding Excise Tax, as amended 4. Federal Decree by Law No. (28) of 2022 Regarding Tax Procedures, as amended 5. Federal Decree No. (32) of 2017 Ratifying the Unified Excise Tax Agreement for the Gulf Cooperation Council (GCC) States 6. Cabinet Resolution No. (52) of 2019 Regarding Excise Goods, the Tax Rates Imposed Thereon, and the Method of Calculating the Excise Price, as amended 7. Federal Decree by Law No. (8) of 2017 Regarding Value Added Tax, as amended (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Preamble)
When did this law come into effect?
The Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price was issued on 24 November 2025 and came into effect on 1 January 2026. It was published in the Official Gazette No. 813 on 12 December 2025. (Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price, 2025, Art. 15)
Source Documents
This article analyses Cabinet Resolution Regarding Excise Goods, the Tax Rates or Amounts Imposed Thereon, and the Method of Calculating the Excise Price for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.