Media ININ Economy We Trust
Media IN ABU DHABI, 16th July, 2019 (WAM
The Federal Tax Authority, FTA, cautioned that owning or selling cigarettes not bearing the ‘Red Digital Tax Stamps’ will be prohibited across local markets as of 1st August 2019, as per the timeline for the ‘Marking Tobacco and Tobacco Products Scheme’, which went into effect on 1st January 2019.
The FTA had issued its Decision No. 03 of 2018 on Implementing the Marking Tobacco and Tobacco Products Scheme, which seeks to electronically track cigarettes packs from the production facility and until they reach the end-consumer, in order to protect consumers from low-quality products, combat tax evasion, and ensure that the Excise Tax due on these products has been settled.
In a press statement issued today, the Authority called on all cigarette producers, importers, dealers, and consumers in the UAE to comply with the Decision in order to avoid the penalties outlined in the Cabinet Decision on Violations of Procedures for Applying Digital Tax Stamps on Tobacco and Tobacco Products.
The objective, the FTA explained, is to curb attempts at commercial fraud and protect consumers from sub-standard products that harm their health and the environment, in addition to combatting tax evasion.
The Federal Tax Authority explained that two types of Digital Tax Stamps were approved, the first of which is Red and meant to be placed on the packaging of tobacco products sold at all local markets, as well as at duty-free in arrival lounges.
The second type, meanwhile, is Green and earmarked for tobacco products sold at duty-free in departure lounges.
FTA Director General Khalid Ali Al Bustani highlighted the remarkable response from relevant Taxable Persons to the Digital Tax Stamps procedures, noting that the Authority had organised a series of training workshops for inspectors at Departments of Economic Development and local Customs Departments across the UAE, exploring the ‘Objectives and Procedures for Implementing the Marking Tobacco and Tobacco Products Scheme’.
Digital Tax Stamps will be placed on the packaging of tobacco products and registered in the FTA database; the Stamps contain data that can be read with a dedicated device used by authorised inspectors to make sure all taxes due on these products have been paid.
During the workshops, FTA representatives shed light on the legislation and Decisions pertaining to the Scheme, including Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products, which outlines the mechanism to place the Digital Tax Stamps indicating that
