UAE cuts tobacco tax-stamp fees and sets new-design transition

Decision No. 18 of 2026 was issued on 15 September. Its changes to the design-transition rules apply from 1 October 2026, while the lower stamp fee starts on 1 January 2027. These are changes to marking costs and compliance dates for tobacco importers and producers, rather than a reduction in the excise tax charged on the tobacco itself.^[1][2][3][4]

Fee reduction from January

The fee falls from AED 0.084 to AED 0.036 per mark, a saving of AED 0.048. The amended article 2 of FTA Decision No. 3 of 2018 covers cigarettes; article 3 of FTA Decision No. 2 of 2019 covers waterpipe tobacco and electrically heated cigarettes. Both require the importer or producer to pay the fee before marks are issued.^[2][3]

The marking requirements continue to prohibit importing and dealing in relevant unmarked goods. The fee amendment therefore reduces a compliance cost without removing the obligation to obtain and affix marks. The consolidated decisions also retain secure-storage, quantity-record and anti-tampering requirements for unused marks.^[2][3]

Old-design stock has separate deadlines

The revised article 2 schedule in FTA Decision No. 3 of 2021 applies to local and duty-free markets, including arrival and departure terminals. Payment for old-design mark requests ends on 15 December 2026; issuance and supply of those marks stop on 31 December. Requests, issuance and supply of new-design marks begin on 1 January 2027.^[4]

Goods bearing old-design marks may be imported or produced in the UAE only until 30 June 2027. Unused old-design marks must be returned by 15 July 2027. Supply, transfer, storage or possession of old-marked goods becomes prohibited at the earlier of 30 June 2028 and the goods' expiry date.^[4]

MNE tobacco and distribution groups should distinguish unused marks from marked inventory when planning the transition. A shipment can satisfy the import deadline while its subsequent storage or sale remains subject to the separate expiry-based cutoff. Procurement, factory marking and warehouse controls should therefore track stamp design as well as batch expiry dates.^[2][3][4]