The Federal Tax Authority (FTA) has launched a new tracking system that it says will ensure UAE excise tax on tobacco products has been paid.
The digital tax stamps, which will be implemented early next year, will help combat tax evasion and commercial fraud, according to FTA Director General His Excellency Khalid Ali Al Bustani, who was addressing an awareness meeting held in Dubai.
The new tax stamp, which will initially be placed on cigaratte packets, and later on all tobacco products, will be registered in the FTA’s database and will contain tax-related data that can be read using special devices.
“The authority has made great progress in implementing the new system with based on best international standards,” Al Bustani said.
“The system will include integrated electronic tracking mechanisms at customs and across supply chain around the UAE. It is set to be rolled out in the near future in coordination with the customs departments, as well as economic development departments, and manufacturers and importers of tobacco products.”
All stakeholders, including local and international producers and importers of tobacco, along with representatives from the authority and the global company that operates the system (which specialises in banknotes manufacturing, digital tax stamps for tobacco products) have been in regular communcation to ensure timely systems integration and explore ways to seamlessly implement the solution in a coordinated manner.
The FTA Director General urged all companies operating in the tobacco manufacturing and supplying sector – which are subject to excise tax – to comply with the new system and its requirements, and to cooperate with the authority to implement it and ensure widespread compliance with UAE tax laws and regulations to avoid administrative penalties.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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