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Mon 28 Oct 2019 03:04 PM

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UAE says ready to go with phase 2 of tobacco tax scheme

UAE's Federal Tax Authority to launch second phase of Marking Tobacco and Tobacco Products Scheme on November 1

UAE says ready to go with phase 2 of tobacco tax scheme

The authority called on businesses that supply water pipe tobacco and electronically heated cigarette plugs to comply with the scheme to avoid violations or interruption to their operations.

The UAE's Federal Tax Authority (FTA) has completed its preparations to implement phase two of the Marking Tobacco and Tobacco Products Scheme to include water pipe tobacco as well as electronically heated cigarette plugs from November 1.

In a statement, the authority said that phase two builds on the success of the first phase where the sale and possession of any type of cigarette that doesn’t bear digital tax stamps was banned across local markets from August.

The scheme serves to protect consumers from commercial fraud and low-quality products, in addition to combating tax evasion, the authority added in the statement.

The FTA said all products marked with the stamps and included under the scheme are electronically monitored from the manufacturing facility until they reach the consumer to ensure that all excise taxes due have been settled.

The authority called on businesses that supply water pipe tobacco and electronically heated cigarette plugs to comply with the scheme to avoid violations or interruption to their operations.

FTA director general Khalid Ali Al Bustani said the Marking Tobacco and Tobacco Products Scheme has helped upgrade inspection and control procedures at customs ports and markets, rendering them more effective in preventing the sale of counterfeit products.

“Starting November 1, all producers and importers of all kinds of water pipe tobacco, and electronically heated cigarette plugs can place their orders for digital tax tsamps from the system’s supplier after FTA approval and then placing them on the packaging of their products before they are supplied on the market and ensure excise tax has been paid in all the UAE,” he said.

He added that from March 1, 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 June 1, 2020, affecting any supply, transfer, stockpiling, or circulating of unmarked waterpipe tobacco and electronically heated cigarette plugs in UAE markets.

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