Exception of Smoking Cessation Products from “Tobacco and Tobacco Products” Definition.
The UAE Ministry of Finance has issued Ministerial Decision No. 249 of 2025, introducing an important clarification regarding the scope of excise taxation under Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates, and Methods of Calculating the Excise Price.
This decision aims to exclude specific nicotine containing products which are designed to assist in smoking cessation from being treated as tobacco and tobacco products for excise tax purposes.
Key Highlights:
1. Smoking Cessation Products Excluded from “Tobacco and Tobacco Products”.
Effective 1 October 2025, products falling under Chapter 24 of the GCC Common Customs Tariff (CCT) and intended exclusively to assist in smoking cessation are not considered excisable tobacco products.
2. Affected Customs Codes
The following Harmonized System (HS) codes are now excluded from the excise tax regime:
|
HS Code |
Description |
|
24 04 91 10 00 00 |
Chewing gum containing nicotine to help tobacco use cessation |
|
24 04 91 20 00 00 |
Tablets to hel tobacco use cessation |
|
24 04 91 91 00 00 |
Other forms to hel tobacco use cessation |
|
24 04 92 10 00 00 |
Patches to help tobacco use cessation |
|
24 04 91 91 00 00 |
Other cessation aids |
|
24 04 99 10 00 00 |
Spray to help tobacco use cessation |
|
24 04 99 20 00 00 |
Nose drops to help tobacco use cessation |
|
24 04 99 30 00 00 |
Injections to help tobacco use cessation |
These products will no longer attract excise tax from 1 October 2025 onwards, provided they are used solely for smoking cessation purposes.
3. Repeal of Conflicting Provisions
Any provisions that contradict this Ministerial Decision are repealed.
Crowe Comments:
This development provides welcome clarity for businesses involved in the import, manufacture, or distribution of nicotine based smoking cessation aids (e.g., patches, gums, sprays).
Companies should:
- Review product classifications under Chapter 24 to confirm eligibility for the excise exemption.
- Update internal excise compliance systems to exclude qualifying cessation products from excise tax reporting.
- Monitor further guidance from the Ministry of Finance or Federal Tax Authority (FTA) for implementation and documentation requirements.
For any questions or clarifications regarding this tax alert our in-house experts are available to provide guidance and support.
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