As per the report by UAE’s Federal Tax Authority (FTA), Dh 191.83 million worth of goods were seized last year due to violations of the local tax regulations. These goods were subject to excise tax.
9.4 million packs of cigarettes without the digital tax stamps; 14,000kg of Hookah tobacco products; and more than 803,000 packets of other selective goods, including soft, energy and sweetened drinks; electronic smoking devices and tools and liquids used in them were seized by the authorities. These products were seized during inspection campaigns in cooperation with the departments of economic development and private sector players. The main reason behind this campaign is to strengthen market inspections and also ensure compliance with legislation and tax procedures.
The implementation of excise tax has helped to build a safe and healthy society by reducing the consumption of harmful goods, as said by FTA. The authority prioritises consumers' protection from harmful products which do not suit the UAE’s regulations and standards while actively combating tax evasion as said by Khalid Ali Al Bustani (Director-General of FTA). He also said that FTA's inspections rely on various field and electronic procedures that prevent the sale, circulation, and stockpiling of products that have not fulfilled the tax obligations.
He added that "These procedures include the 'Marking Tobacco and Tobacco Products Scheme', which went into effect on January 1, 2019, in line with Cabinet Decision No. (42) of 2018. As per the decisions it is mandatory to display a Digital Tax Stamp on the packaging of tobacco products and registration in the FTA's database. The stamp has some data in it which could be read by special devices.
Source: Khaleej Times
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