UAE’s FTA to implement digital tobacco tax in January

Dubai – Mubasher: The UAE’s Federal Tax Authority (FTA) announced that it has finished the requisite measures to implement a new marking scheme for tobacco products as of 1 January 2019.

The scheme includes electronic monitoring of all types of imported, produced and locally traded cigarettes, from production to consumer, the state-run body said.

The new rules will be gradually extended in an a bid to cover all tobacco products, Arabian Business reported, citing the FTA’s statement.

Moreover, the authority called tobacco producers to comply with the new regulations to avoid being penalised or prevented from operating until they fully comply with the system.

The digital seal that will be installed and registered in FTA’s database will facilitate the digital monitoring of tobacco products.

"The UAE is the first country in the region to use such a system, which employs sophisticated methods to promote accuracy and effectiveness,” Khalid Ali Al Bustani, the director-general of the FTA, said.

In May imported cigarettes without the digital stamps will be banned, and they will be forbidden as of August in case they do not carry the stamp, the FTA noted.

“This system is an innovative solution to support and increase the efficiency of inspections and control at customs outlets and markets and prevents the sale of non-compliant products,” Al Bustani added.

Mubasher Contribution Time: 27-Dec-2018 09:37 (GMT)
Mubasher Last Update Time: 27-Dec-2018 10:06 (GMT)