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Media In Dubai – 17 February 2019
The Federal Tax Authority has announced that the second phase of the marking system for tobacco and its products is scheduled to be launched from the fourth quarter of this year to expand the system to include all tobacco products used in imported, Cigarettes that will be electronically tracked from production until they reach the final consumer to ensure full compliance with the selective tax payable on tobacco and tobacco products.
This came during a meeting organized by the Authority on Sunday in Dubai on the mechanisms and objectives of the implementation of the “Marking System on Tobacco and Tobacco Products”, which was opened by Khalid Ali al-Bustani, Director General of the Federal Tax Authority with the participation of a large number of international and local manufacturers and importers and distributors of shisha tobacco products ( In the UAE and in the free zones.
The first phase of the trademark system for tobacco and its products entered into force from the beginning of January for all types of imported, produced and locally traded cigarettes. Manufacturers and importers of all kinds of cigarettes have been able to issue purchase orders for the digital stamp application from the system supplier, The Authority to install them on cigarette packs before leaving the factory for supply to local markets, and to ensure the payment of selective tax on it throughout the UAE, and from 1 May next will prevent the import of all types of cigarettes to the country without the presence of distinctive signs The guardian, and as of next August will ban the sale of (trading) all types of cigarettes that do not carry the “digital stamps” in the UAE markets.
The Council of Ministers’ resolution No. 42 of 2018 issued last July on the development of distinctive marks on tobacco and tobacco products set out a comprehensive regulatory framework to support the Authority’s efforts to collect taxes and combat tax evasion in cooperation with concerned authorities to implement uniform procedures to guarantee the rights and duties of taxable persons. The labeling mechanism was shown to indicate that the selective tax on such goods had been paid and that the producer would be obliged to place them on these selective commodities within the selected selective production facility immediately after packaging if produced in the State or before importation if Production outside the UAE.
Khalid Al Bustani said: “This induction meeting comes within the efforts of the Federal Tax Authority to communicate directly with the representatives of the tobacco companies of Shisha and all those involved in this sector and with the company that develops the system of the distinctive tobacco products to review the work plan and the requirements of applying the system during the next phase. The concerned companies and the implementing company of the system to harmonize the systems and gather requirements and coordination between all parties involved in order to ensure the application of the system successfully and effectively.
“The UAE is the first regional region in the implementation of this new system, which aims mainly at preventing tax evasion through sophisticated mechanisms that are accurate and effective in support of the Authority’s efforts to collect taxes in cooperation with the concerned authorities, The duties of taxable persons, the promotion of competitiveness and the highest level of transparency in the procedures governing their dealings with the Commission. ”
“The system is an innovative solution to support and increase the efficiency of inspections and control at customs outlets and markets, and to prevent the sale of non-compliant products to the tax payable. The digital stamps that prove the packaging of tobacco products contain accurate electronic information that can be read by a special device through which Ensure that the tax on these products is paid
