As of tomorrow / Sunday / the first of March 2020, the “Distinguished Signs System on Tobacco and its Products” will witness the implementation of the second steps of the second phase timetable for the system that aims to raise the efficiency and effectiveness of tax control systems based on the latest digital technologies in order to enhance the requirements of the national agenda of the Emirates, which aims To move to a knowledge-based national economy.
The Federal Tax Authority renewed its assurance that starting tomorrow, importing all kinds of hookah tobacco and cigarette coils that are electrically heated without "digital tax stamps" will be prohibited, noting that starting from the first of next June, supplying, transporting, storing, or possessing these will be prohibited. Selective goods that are not digitally defined in the local market.
The application of the distinctive signs system on tobacco and its products has achieved tangible success in its first stage, which came into effect from the beginning of January 2019 for all types of imported, locally produced and produced "cigarettes", by providing "digital tax stamps" from the system supplier, after the authority approved to install them on cigarette packages Before leaving the factory to supply it to the local markets, and to ensure that the selective tax is paid on it throughout the Emirates.
As of May 1, all types of cigarettes without the distinctive signs were banned, and from August 1, all types of cigarettes that did not bear "tax stamps" in the UAE market were banned.
Since the issuance of the Honorable Cabinet Resolution No. (42) of 2018 regarding the establishment of distinctive signs on tobacco and its products, the Authority has developed a comprehensive plan on several axes in order to ensure the accurate and smooth application of the decision, it has allowed tobacco producers, importers, distributors and products to obtain “digital tax stamps” from a supplier The system has easy procedures through the Authority's website, to install it on the packages of these products before they leave the factory to supply them to local markets, and to ensure that the selective tax is paid on them, and the Authority called on all relevant business sectors to adhere to the system to avoid exposure to administrative fines.
The authority implemented an awareness campaign for those concerned with the application in all emirates of the country, holding a series of introductory seminars and workshops for representatives of the producers, importers and distributors of tobacco and its products in the presence of the company operating the system of distinctive signs for tobacco products, during which the requirements for implementing the system were clarified, and many coordination meetings and meetings were held with the relevant authorities Including economic development departments and local customs departments, within the framework of the authority’s keenness to enhance its partnerships with all concerned authorities in the governmental and private sectors with a view to the successful application of the tax system.
The UAE is the first regionally in implementing this digital system that aims to protect consumers from commercial fraud and poor quality products, environmental protection and human health in addition to preventing tax evasion through advanced mechanisms to support the Authority's efforts to collect taxes in cooperation with the relevant authorities, with standardized control measures to ensure rights And the duties of the taxable, and to enhance competitiveness and provide the highest levels of transparency in the procedures that govern their dealings with the authority.