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21 February 2024

Waterpipe tobacco, e-cigarettes will come under 'Marking Tobacco' as of November 1


Waterpipe tobacco - known in Arabic as ‘Mu’assel’ - and electrically heated cigarettes will also fall under ‘Marking Tobacco and Tobacco Products Scheme’ as part of the second phase effective from 1st November 2019, according to the Federal Tax Authority, FTA.

‘Digital Tax Stamps’ will be made available for purchase by producers and importers of waterpipe tobacco and electrically heated cigarettes, the Authority revealed, as it held its second awareness workshop in Dubai to introduce them to the Scheme’s procedures and objectives, as well as the timeline for the second phase. The workshop was led by FTA experts and representatives from De La Rue, the company commissioned by the Authority to operate the system.

In a press statement issued today, FTA Director-General Khalid Ali Al Bustani said, "This workshop is part of the Authority’s plan to raise tax awareness among taxable businesses, maintain constant communication with professionals working across all economic activities, and keep them in the loop with regards to the latest developments in tax procedures. These workshops allow us to listen to their opinions and suggestions, and address any obstacles they may be facing to ensure a smooth implementation of tax laws."

"The Authority is committed to strengthening its partnerships with the various relevant entities in both the government and the private sector. These strategic partnerships are crucial for successfully implementing the tax system," Al Bustani explained, adding that the FTA is also dedicated to organising continuous awareness campaigns, seminars, and workshops for all business sectors.

In a session marked with great interaction from attendees, the FTA experts went into the details of the upcoming phase two of the ‘Marking Tobacco and Tobacco Products Scheme’, noting that as of 1st November 2019, the Digital Tax Stamps will be made available for purchase, where producers and importers of 'Mu’assel’ and electrically heated cigarettes are required to place them on these products to indicate that all due taxes have been settled.

As of 1st March 2020, it will be prohibited to import into the UAE any of the Excise Goods outlined in FTA Decision No. 02 of 2019 on Marking Tobacco and Tobacco Products, if they do not bear the Stamps. Then starting on 1st June 2020, it will no longer be permissible to supply, transfer, store, or possess said Excise Goods in the UAE unless they have the Stamps.