22 Feb 2020
Tax stamp to be banned in UAE
Importing any type of waterpipe tobacco or electrically heated cigarette plugs that are not marked with ‘Digital Tax Stamps’ will be prohibited throughout the UAE from March 1, 2020, asserted the Federal Tax Authority.
The ban is to set for introducing stage two of the ‘Marking Tobacco and Tobacco Products Scheme’, it will protect consumers from commercial fraud and low-quality products explained FTA.
The Authority informed producers, importers, and distributors of these products to comply with the system, as directed in Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products.
Authority also emphasized the importance of issuing FTA decision No. 02 of 2019 on Marking Tobacco and Tobacco Products, which came in to effect on November 1, 2019.
From March 1, 2020, all Designated Excise Goods outlined in the Decision will no longer be enabled to be imported to the UAE unless they are marked with Digital Tax Stamps. From June 1, 2020, any supply, transfer, stockpiling, or possession of these products will be banned if they are not marked with Digital Tax Stamps. Says FTA.
“The Scheme supports the FTA’s efforts to collect taxes, combat tax evasion, protect consumers from commercial fraud, prevent the sale of subpar products in local markets, and help protect the environment and public health. The Federal Tax Authority sought to execute a comprehensive awareness campaign to make sure local markets are prepared, well in advance, for implementing the second phase of the scheme,” said FTA Director-General Khalid Ali Al Bustani.