The Federal Tax Authority (FTA) has announced that it will be using a new electronic tracking system on tobacco products to prevent tax evasion and commercial fraud starting early 2019, Arabian Business reported.

The FTA indicated that the tracking system will use digital tax stamps to verify that the UAE excise tax on tobacco products has been paid, Arabian Business reported.
The tax stamp will first be placed on cigarette packets, and subsequently on all other tobacco products. The tax stamp, which will store tax-related information that can be read by using a specific device, will also be registered in the FTA's database, according to the report.
Khalid Ali Al Bustani, FTA director general, was quoted as saying, “The system will include integrated electronic tracking mechanisms at customs and across supply chain around the UAE. It is set to be rolled out in the near future in coordination with the customs departments, as well as economic development departments, and manufacturers and importers of tobacco products.”
Al Bustani advised businesses in the manufacturing and supplying tobacco segment to comply with new UAE tax requirements and to work with officials to make sure the new system is implemented to prevent "administrative penalties", Arabian Business reported.