Dubai:– The Federal Tax Authority (FTA) held a series of training workshops to introduce inspectors at Departments of Economic Development in the UAE to the objectives and methods to implement the “Marking Tobacco and Tobacco Products Scheme”, which went into effect in January 2019.

In a press statement issued today, the Authority noted that the sessions are part of the FTA’s effort to raise awareness of the tax system among relevant authorities and entities to combat tax evasion and better monitor markets. The workshops seek to ensure preparedness before carrying out inspection campaigns to verify that the Marking Tobacco and Tobacco Products Scheme is being implemented. The Authority explained that as of August 1, 2019, selling or distributing any unmarked tobacco products will be prohibited across all local markets.

FTA Director General His Excellency Khalid Ali Al Bustani underlined the importance of these courses to the successful implementation of the Scheme, which facilitates inspections and strengthens market control procedures to prevent the sale of non-tax-compliant products.

“Digital Marks will be placed on the packaging of tobacco products and registered in the FTA database; the Marks contain data that can be read using a sophisticated device,” H.E. explained, adding that the new training workshops are part of the Authority’s commitment to maintaining constant communication with all relevant government and private-sector entities to keep them in the loop with developments surrounding tax procedures and gauge their opinions and suggestions to ensure the UAE tax system is implemented easily and seamlessly.

During the workshops, FTA representatives shed light on the legislation and resolutions pertaining to the Scheme, including the Cabinet Decision No. (42) of 2018 on Marking Tobacco and Tobacco Products, which outlines the mechanism to place the Digital Mark indicating that Excise Tax has been paid, whereby tobacco manufacturers are required to place the Marks on the products within the production facility immediately after packaging, if produced in the UAE, or prior to importing them if they are produced abroad. The FTA has determined a specific placement and method to apply the Digital Marks to each product.

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The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae 

© Press Release 2019

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