Dubai: A new electronic tracking system for ensuring compliance on tobacco products will soon come into effect, according to the Federal Tax Authority (FTA).
In a statement released on Sunday, the authority said that the system will use digital tax stamps to ensure that the excise tax on tobacco products has been paid.
Set to go into effect in early 2019, the system seeks to combat tax evasion and commercial fraud, supporting the FTA’s efforts to fully implement excise tax systems and verify payment of excise tax on tobacco products.
The meeting was headed by Khalid Ali Al Bustani, director general of the FTA, and attended by local and international producers and importers of tobacco, along with representatives from the authority, and the global company that operates the system, which specialises in banknotes manufacturing and digital tax stamps for tobacco products
According to the FTA, the meeting is part of the authority’s efforts to reach out to tobacco companies to work on a joint action plan as well identify the requirements for implementing the system. It was preceded by several communications with all companies involved, to ensure timely systems integration and explore ways to seamlessly implement the solution in a coordinated manner.
