Ministerial Decision No. 249 of 2025 (issued 22 September 2025, effective 1 October 2025) excludes specific smoking cessation products from the definition of "tobacco and tobacco products" for UAE excise tax purposes, using a precise list of Harmonised System (HS) customs codes drawn from Chapter 24 of the GCC Common Customs Tariff. Eight HS codes covering nicotine chewing gum, tablets, patches, sprays, nose drops, and injections are specifically excluded. This exclusion applies under Article 3(2) of Cabinet Decision No. 197 of 2025 (effective 1 January 2026) and previously under Cabinet Decision No. 52 of 2019. Abdelhamid & Co (FTA TAAN 20033908) advises pharmacies, healthcare distributors, and importers of nicotine replacement therapy products on the classification and compliance implications of this exclusion.
Legal Framework — Article 3(2) and Ministerial Decision No. 249 of 2025
Article 3(1) of Cabinet Decision No. 197 of 2025 defines "tobacco and tobacco products" broadly as all items within Chapter 24 of the GCC Common Customs Tariff that are imported, cultivated, or produced in the UAE, including electrically-heated cigarettes. This definition would, on its face, include certain nicotine products in Chapter 24. However, Article 3(2) carves out products "exclusively intended to assist in smoking cessation," with the specific HS codes to be determined by the Minister of State for Financial Affairs — which Ministerial Decision No. 249 of 2025 provides.
Ministerial Decision No. 249 of 2025 supersedes Ministerial Decision No. 236 of 2019 (which applied under Cabinet Decision No. 52 of 2019) on this specific point. The decision ensures that products designed to help people quit smoking are not inadvertently taxed as tobacco products — a logical and health-policy-consistent exclusion.
The Eight Excluded HS Codes — Full Schedule
Article 1 of Ministerial Decision No. 249 of 2025 lists the following HS codes excluded from the tobacco definition:
| HS Code | Product description |
|---|---|
| 24 04 91 10 00 00 | Chewing gum containing nicotine to help tobacco use cessation, including smoking |
| 24 04 91 20 00 00 | In tablet form to help tobacco use cessation, including smoking |
| 24 04 91 91 00 00 | Other forms to help tobacco use cessation, including smoking (under subheading 24 04 91) |
| 24 04 92 10 00 00 | Patches to help tobacco use cessation, including smoking |
| 24 04 92 91 00 00 | Other (under subheading 24 04 92) to help tobacco use cessation, including smoking |
| 24 04 99 10 00 00 | Spray to help tobacco use cessation, including smoking |
| 24 04 99 20 00 00 | Nose drops to help tobacco use cessation, including smoking |
| 24 04 99 30 00 00 | Injections to help tobacco use cessation, including smoking |
The "Exclusively Intended" Requirement — Critical Compliance Point
The exclusion under both Ministerial Decision No. 249 of 2025 and Article 3(2) of Cabinet Decision No. 197 of 2025 applies only to products that are "exclusively intended to assist in smoking cessation." This is not merely a labelling standard — the product must, by its nature and designated purpose, be exclusively for smoking cessation. A product that also has recreational nicotine delivery uses, or that is marketed in both cessation and non-cessation contexts, would not meet the exclusivity threshold and could fall back within the Chapter 24 tobacco definition.
The "exclusively intended" formulation also means that a nicotine product classified under one of the eight HS codes listed in the Decision but not actually manufactured and used for smoking cessation purposes would not automatically benefit from the exclusion. Importers and producers should ensure their product documentation, including marketing materials, regulatory approvals, and product specifications, clearly establishes the smoking cessation purpose.
Interaction with Electronic Smoking Device Categories
Articles 4 and 5 of Cabinet Decision No. 197 of 2025 cover liquids used in electronic smoking devices and electronic smoking devices themselves — both subject to 100% excise tax regardless of nicotine content. The Ministerial Decision No. 249 of 2025 exclusion applies specifically to Chapter 24 products (traditional tobacco-category HS codes); it does not extend to electronic nicotine delivery products classified under Chapter 85 of the GCC Tariff (such as e-cigarette devices under HS 8543 40 10 00 00 et seq. per Ministerial Decision No. 1 of 2025). Nicotine patch products under Chapter 24 are excluded; nicotine e-liquids under Chapter 24 vaping classifications are not.
Effective Date and Historical Context
Ministerial Decision No. 249 of 2025 took effect on 1 October 2025, coinciding with the effective date of Federal Decree-Law No. 7 of 2025 (which amended the Excise Decree-Law). The 1 October 2025 effective date predates Cabinet Decision No. 197 of 2025 (effective 1 January 2026) — meaning the smoking cessation exclusion applied during the Q4 2025 transition period under the old Cabinet Decision No. 52 of 2019, before carrying over into the new regime. Importers who classified cessation products as taxable tobacco during the October–December 2025 period and paid excise tax on them may have a deductible tax or refund position worth reviewing.
Practical Implications for Importers and Distributors
For pharmacies, hospital supply chains, and healthcare product distributors, the practical implications are:
- Nicotine replacement therapy products listed in the eight HS codes are not excise goods — they do not trigger excise tax registration, return, or payment obligations on the importer or distributor
- Such products should not be included in excise tax returns or price lists submitted to the FTA as excise goods
- If a business imports both tobacco products (taxable) and cessation products (excluded), it must maintain separate records distinguishing the two categories to avoid inclusion of excluded products in taxable quantities
- Any over-declaration or over-payment of excise tax on cessation products should be corrected via voluntary disclosure
Why Choose Abdelhamid & Co
We provide HS code classification analysis for pharmaceutical and healthcare importers to confirm which products fall within the Ministerial Decision No. 249 of 2025 exclusion, and which remain taxable under the electronic smoking device provisions. Our compliance review covers the boundary between excluded cessation products and taxable nicotine delivery products, and our voluntary disclosure service addresses any over-payment of excise tax on cessation products during 2025.
Frequently Asked Questions
Are nicotine patches and gum subject to UAE excise tax in 2026?
No. Under Ministerial Decision No. 249 of 2025 (effective 1 October 2025) and Article 3(2) of Cabinet Decision No. 197 of 2025, nicotine patches (HS 24 04 92 10 00 00), nicotine chewing gum (HS 24 04 91 10 00 00), nicotine tablets, nicotine sprays, nose drops, and nicotine injections for smoking cessation are specifically excluded from the definition of tobacco and tobacco products for excise tax purposes.
What is the "exclusively intended for smoking cessation" condition in UAE excise tax?
Under Article 3(2) of Cabinet Decision No. 197 of 2025 and Ministerial Decision No. 249 of 2025, the excise tax exclusion applies only to products exclusively intended to assist in smoking cessation. Products with dual uses (recreational nicotine delivery plus cessation) or products not supported by smoking cessation documentation do not automatically qualify for the exclusion, even if classified under one of the eight listed HS codes.
Does the smoking cessation exclusion apply to e-cigarettes marketed as cessation aids?
No. The Ministerial Decision No. 249 of 2025 exclusion applies specifically to products under Chapter 24 of the GCC Customs Tariff. Electronic smoking devices and their liquids fall under Chapter 85 (per Ministerial Decision No. 1 of 2025) and Articles 4–5 of Cabinet Decision No. 197 of 2025 — they are taxable at 100% regardless of marketing as cessation aids. The exclusion is category-specific, not purpose-specific for Chapter 85 products.
When did the UAE smoking cessation excise tax exclusion take effect?
Ministerial Decision No. 249 of 2025 was issued on 22 September 2025 and took effect on 1 October 2025. It applies from that date under Cabinet Decision No. 52 of 2019 (for Q4 2025) and under Cabinet Decision No. 197 of 2025 (from 1 January 2026 onward). Importers who paid excise tax on qualifying cessation products between October–December 2025 may have a recovery position to review.
Do pharmacies need to register for UAE excise tax if they only distribute smoking cessation products?
No. If a pharmacy or distributor exclusively imports and distributes products falling within the eight HS codes listed in Ministerial Decision No. 249 of 2025, those products are not excise goods under Article 3(2) of Cabinet Decision No. 197 of 2025. No excise tax registration obligation arises for activities limited to these excluded products. Registration is required only if the business also handles other excise goods (tobacco, devices, energy drinks, sweetened drinks).
Related Services
- Excise Tax Registration — assess registration obligations for mixed tobacco and cessation product importers
- Voluntary Disclosure — recover excise tax over-paid on cessation products before the exclusion was applied
- Compliance Review — verify correct classification of Chapter 24 nicotine products
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