ABU DHABI, (Pakistan Point News - 27th Oct, 2019) The Federal Tax Authority, FTA, has completed its preparations to carry out phase two of the "Marking Tobacco and Tobacco Products Scheme" to include water pipe tobacco (known in Arabic as mu’assel), as well as electronically heated cigarette plugs, beginning 1st November 2019.
In a press statement issued today, the authority asserted that phase two builds on the success of its predecessor, where the sale and possession of any type of cigarette that does not bear the Digital Tax Stamps was banned across local markets starting in August 2019. The scheme serves to protect consumers from commercial fraud and low-quality products, in addition to combatting tax evasion, the authority noted.
The FTA explained that all products marked with the stamps and included under the scheme are electronically monitored from the manufacturing facility until they reach the end consumer, to ensure that all excise taxes due on tobacco and tobacco products are settled.
Phase two of the scheme goes into effect in accordance with FTA Decision No. (2) of 2019 and the timeline the authority had set in coordination with De La Rue, the company commissioned to operate the system.
"Starting 1st November 2019, all producers and importers of all kinds of water pipe tobacco, and electronically heated cigarette plugs can place their orders for Digital Tax Stamps from the system’s supplier after FTA approval, and then need to place them on the packaging of their products before they are supplied in the market and ensure the excise tax has been paid in the UAE," said FTA Director-General, Khalid Ali Al Bustani.
He added, "Starting from 1st March 2020, importing any type of water pipe tobacco and electronically heated cigarette plugs into the UAE without the Digital Tax Stamps will be strictly prohibited. Following that, another ban will come into effect on 1st June 2020, this time affecting any supply, transfer, stockpiling, or circulating of unmarked waterpipe tobacco and electronically heated cigarette plugs in UAE markets."
He noted that retailers will also be prohibited from selling such products, and will otherwise incur penalties, as stated in the Cabinet Decision No. (42) of 2018 on Marking Tobacco and Tobacco Products.
The FTA outlined the procedure for ordering Digital Tax Stamps, explaining that manufacturers or suppliers can download the application form from the dedicated link on the FTA website, fill in the required data and send the request to the link on the website to receive their username and password that will allow them to access the system.
