UAE’s FTA to begin second phase of tobacco markings

UAE’s Federal Tax Authority (FTA) intends to begin the second leg of its ‘Marking Tobacco and Tobacco Products Scheme’ from November 1.

The import of water pipe tobacco and electrically heated cigarette plugs that do not have digital tax stamps will be banned from March next year, a statement said.

The first phase of the scheme, which started in August this year, banned all type of cigarettes in local markets that didn’t bear the digital tax stamps. The initiative is primarily to protect customers from low quality products and fraud, as well as to curb tax evasion.

“Starting November 1, 2019, all producers and importers of all kinds of water pipe tobacco, and electronically heated cigarette plugs can place their orders for Digital Tax Stamps 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 UAE,” said H.E. Khalid Ali Al Bustani, FTA director general.

The entire value chain (manufacturer to consumer) of all marked and approved products is electronically monitored to ensure all excise taxes due on tobacco and related products are paid, the statement said.

Manufacturers and suppliers can download the application form from the FTA website to order digital tax stamps.

“Starting 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,” H.E. said.

“Following that, another ban will come into effect on June 1, 2020, this time affecting any supply, transfer, stockpiling, or circulating of unmarked waterpipe tobacco and electronically heated cigarette plugs in UAE markets.”