The Federal Tax Authority said that as of June 1, 2020, it will be prohibited from supplying, transferring or stockpiling tobacco or electronically heated cigarettes that do not carry the digital tax stamps.
Ahead of implementing the ban, FTA has speeded up its preparation to monitor the current state of possessions such as the ones about to be ‘banned’ in the country.
In a press statement issued, the FTA noted that, as part of its plan to raise awareness among all Persons affected by or involved in implementing the scheme, the Authority held the fourth workshop to introduce producers, importers, and distributors of tobacco and tobacco products to the Scheme’s procedures and objectives.
Seeking to protect the consumer from commercial fraud and low-quality products, this ban marks the second phase of the ‘Marking Tobacco and Tobacco Products Scheme’.
This phase is equipped in not only helping the consumer but also combating with tax evasion.
Special Workshops Arranged to Ramp Up The Ban:
To raise awareness, the FTA has so far held four workshops to introduce producers, importers and distributors of tobacco and tobacco products to the scheme’s procedures and objectives.
The Authority explained that the workshop is part of its efforts to establish and maintain contact with representatives from the sector, as the operating company representatives presented the plan of action and requirements for implementing the Scheme over the upcoming period.
Al Bustani asserted that the ‘Marking Tobacco and Tobacco Products Scheme’ is an innovative solution for combatting tax evasion and protecting consumers’ health from subpar products.
The FTA Director General urged Persons subject to Excise Tax in the in the tobacco manufacturing and supply sector to comply with Cabinet Decision No. (42) of 2018 and FTA Decision No. (2) of 2019 on Marking Tobacco and Tobacco Products.
The Digital Tax Stamps facilitate inspection and control procedures; it allows tobacco products to be digitally tracked from the manufacturing facility and until they reach the end consumer to ensure they are compliant with standards and that all due Excise Taxes have been paid.
The workshop is part of the Federal Tax Authority’s efforts to establish direct contact with producers, importers, and distributors of waterpipe tobacco and electrically heated cigarettes, among other stakeholders from the sector and representatives from the system operator, Al Bustani noted, adding that this workshop was preceded by several meetings and constant communication with relevant entities, including Departments of Economic Development, local customs agencies, and representatives from relevant companies and the system operator to ensure systems meet all necessary requirements, and coordinate among all parties involved to ensure the efficient and smooth roll-out of the system.