The Federal Tax Authority has completed preparations for the implementation of the second phase of the system of labeling tobacco and its products, to include all types of hookah tobacco, known as “masil”, and tobacco rolls intended for use with electric heating, which will come into effect on November 1.
The CMA confirmed in a press release yesterday that the implementation of the second phase comes as a complement to the successful implementation of the first phase of the system, which began to prevent the sale (trading) and possession of all types of cigarettes that do not carry «digital tax stamps» in local markets, as of the beginning of August 2019, confirmed The system supports the Commission's efforts to collect taxes, combat tax evasion, and protects consumers from commercial fraud and the leakage of poor products to markets.
The Federal Tax Authority explained that all products identified by digital tax stamps covered by the system of distinctive signs are tracked electronically from production until their arrival to the end consumer, to ensure full compliance with the payment of selective tax due on tobacco and tobacco products, stressing the need for the commitment of tobacco companies , And tobacco rolls intended for use by electric heating of the system, to avoid violation of tax legislation, and the risk of being deprived of its work until full compliance with the requirements of the system.
The Director General of the Federal Tax Authority, Khalid Ali Al Bustani, said that the system of "marking tobacco and tobacco products," which was applied for the first time in the region in the UAE, contributed to the development of inspection and control procedures at customs ports and markets, and increase its accuracy and effectiveness to prevent the sale of smuggled and other products Completed tax.
He added: `` The implementation of the second phase of the system comes in accordance with the Authority's decision No. (2) of 2019 and the timetable set by the Federal Tax Authority in coordination with the company (de la Rue) operating the system, '' pointing out that «digital tax stamps» recorded in the database in the Authority They are installed on packets of tobacco products, and each stamp contains electronically recorded information that can be read by a special device through which the tax on these products is confirmed.
As of November 1, 2019, producers and importers of all types of hookah tobacco and tobacco rolls intended for electric heating will be able to issue purchase orders (digital tax stamps) from the system supplier, after being approved by the Authority, to install them on packages of these products before they exit The factory to supply it to local markets and ensure that selective tax is paid throughout the UAE. ”
He stressed that as of March 1, 2020, importation of all kinds of hookah tobacco and tobacco rolls intended for electric heating will be prohibited to the country without the presence of the distinctive “digital tax stamps” on them. Possessing or trading all types of hookah tobacco and tobacco rolls intended for electric heating that do not carry “digital tax stamps” in the UAE market. Retailers will also be prohibited from selling these products without “digital tax stamps” to consumers.
He said that under the Council of Ministers' Resolution No. 42 of 2018 on “Marking Tobacco and Tobacco Products”, a person who owns or trades specific selective goods without the distinctive markings will be fined.