UAE’s Federal Tax Authority (FTA) will begin the second phase of its ‘Marking Tobacco and Tobacco Products’ on 1 November, Gulf Business reported.

The first phase of the scheme began in August, making all cigarettes which did not bear digital tax stamps illegal. The second phase will begin on 1 November and will ban the importation of any water pipe tobacco and electronically heated cigarettes which do not have digital tax stamps. According to the report, the aim of the initiative is to prevent consumers from buying low quality and fraudulent products and to curb tax evasion.
The FTA Director General, H.E. Khalid Ali Al Bustani, was quoted as saying, “Starting November 1, 2019, all producers and importers of all kinds of water pipe tobacco, and electronically heated cigarette plugs can place their orders for Digital Tax Stamps from the system’s supplier after FTA approval and then placing them on the packaging of their products before they are supplied on the market and ensure excise tax has been paid in all UAE”.
According to the report, manufacturers and suppliers will be able to download an application form from the FTA website to order the stamps. The aim of the initiative is that all marked and approved tobacco and tobacco related products will be digitally stamped to ensure all excise taxes have been paid.
The third phase of the scheme is planned to come into effect in June 2020. This phase will primarily focus on the supply, transfer, stockpiling and circulation of unmarked water pipe tobacco and electronically heated cigarettes.