UAE set to introduce digital tax stamp scheme for tobacco products in 2019
Chetan Suri
<p>Looking ahead, the forthcoming tax period will see the implementation of several new regulatory mechanisms and systems.</p> <p>The UAE is also set to introduce a new digital tax stamp scheme for tobacco products, which will come into effect at the beginning of 2019, the Federal Tax Authority (FTA) has confirmed.</p> <p>The scheme follows the implementation of a 100 per cent excise tax on tobacco products in October 2017.</p> <p>It will establish a “comprehensive tracking framework” to support the FTA’s efforts in collecting taxes, combating tax evasion, and upholding the rights and duties of taxable persons in the UAE, a statement said.</p> <p>The scheme will work by means of a stamp or digital seal that will be installed on tobacco product packaging, which will be registered in the authority’s database and read by special devices to ensure that the tax on the products is paid.</p> <p>It will deter tax evasion, facilitate inspections at customs points and in markets, and prevent the selling of non-taxed tobacco products, said Khalid Ali Al Bustani, director general of the FTA.</p> <p>He noted that the cabinet decision on marking tobacco and tobacco products aims to strengthen the UAE’s tax system and that the UAE is the first country in the region to apply a digital tracking system for tobacco-labelling.</p> <p>He also stressed that tobacco companies must comply with the new scheme to avoid penalties and being banned from practicing their business.</p> <p>Source:-https://gulfbusiness.com/uae-set-introduce-new-digital-tax-stamp-scheme-tobacco-products-2019/</p>