UAE – Mubasher: The Federal Tax Authority (FTA) announced it will impose fines on violators of marking tobacco and tobacco products scheme due to the Cabinet’s decision regarding the matter.
It is worth noting that the tobacco scheme aims at applying digital tax stamps on the packages and products before supplying them to local markets.
This is a key step to reduce attempts at commercial fraud and protect consumers from low-quality products that are not compatible with standards and could harm their health and the environment, according to a recent press release.
The penalties have been set for nine types of violations of the digital tax stamp scheme to ensure governance and transparency in the UAE markets, the FTA said.
The FTA stressed that implementing the penalties will protect consumers from contraband products and will halt sales of smuggled goods in the country.
Fines imposed on the digital tax stamps violators will range between AED 20,000 and AED 50,000, the authority added.
The government has halted the import of any tobacco product that is not subject to the digital tax stamps as of 1 May.
Furthermore, the sale, importation, or production of cigarettes outside the state’s marking tobacco and tobacco products scheme across UAE markets will be prohibited As of next August.
The FTA has implemented the marking tobacco and tobacco products scheme as of 1 January by enabling electronic track of cigarette packs from production until they reach consumers to ensure full compliance with Excise Tax obligations.
