Ministerial Decision No. 1 of 2025, which came into effect on January 3, 2025, establishes new taxation rules for excise goods, including liquids and devices for electronic smoking, as well as beverage concentrates.
This document repeals the previous Ministerial Decision No. 236 of 2019, which regulated similar matters.
Key changes compared to the previous decision:
1. Liquids for electronic smoking devices are now classified according to new harmonized codes from Chapter 24 of the Common Schedule for Classification and Coding of Goods for the Gulf Cooperation Council Countries (GCC).
2. Electronic smoking devices (including e-cigarettes) now have more precise classification codes, simplifying the taxation and control process.
3. Clarifications on the calculation of excise prices for concentrates, powders, gels, and extracts used in beverage production (e.g., carbonated, energy, or sweetened drinks) have been introduced, particularly regarding the so-called "Designated Retail Sales Price," which affects the tax calculation..
This new decision will be beneficial for manufacturers, importers, and retailers of excise goods. It clearly r...