New system will help protect consumers and ensure correct taxes are paid, officials say.
UAE businesses have been urged to prepare for new import restrictions on waterpipe tobacco imports and electric cigarettes.
The Federal Tax Authority (FTA) has ramped up preparations ahead of a ban on importing any type of waterpipe tobacco, known as Mu’assel, and electronic cigarettes without ‘digital tax stamps’, which help authorities in the Emirates track products and collect duties.
The ban comes into force next month. From June, it will become illegal to sell or stockpile waterpipe tobacco or electric cigarettes which have not been flagged to authorities.
The new rules will help protect consumers from counterfeit and low quality products and secure government revenues, officials said.
Across the world there has been a rise in the use of counterfeit e-cigarette products in particular, which can present risks for users’ health.
Tobacco products and e-cigarettes are subject to ‘sin taxes’ which have been rolled out and expanded in the UAE over recent years.
The FTA recently held a fourth workshop aimed at spreading awareness of the new rules, which brought together suppliers from both local markets and free zones, as well as several government officials and experts from the company operating the system.
The Digital Tax Stamps allow tobacco products to be digitally tracked from the manufacturing facility until they reach the end consumer to ensure they are compliant with standards and that all due excise taxes are paid.
