New scheme includes electronic monitoring of all kinds of imported, produced and locally traded cigarettes to ensure compliance with excise tax payments
The Federal Tax Authority (FTA) has announced that the selling or distribution of unmarked tobacco products will be prohibited across all local markets as of August 1.
The authority said that it has held a series of training workshops to introduce inspectors across the UAE's economic development departments to the Marking Tobacco and Tobacco Products Scheme, which went into effect in January.
The new scheme includes electronic monitoring of all kinds of imported, produced and locally traded cigarettes, from production to consumer, to ensure compliance with excise tax payments.
The digital monitoring of tobacco products will be facilitated by a digital seal which will be installed on their packaging and registered in an FTA database.
According to a FTA statement, the workshops seek to ensure preparedness before carrying out inspection campaigns to verify that the Marking Tobacco and Tobacco Products Scheme is being implemented.
FTA director-general, Khalid Ali Al Bustani, said: "Digital marks will be placed on the packaging of tobacco products and registered in the FTA database; the marks contain data that can be read using a sophisticated device."