UAE’s Federal Tax Authority (FTA) is postponing the implementation of a ban on supplying, transferring, storing, and possession of water pipe tobacco (mu’assel) and electrically heated cigarettes in the UAE that do not carry digital tax stamps to January 1, 2021. The ban had previously been scheduled to come into effect on June 1, 2020.
This extension was to address the challenges posed by current conditions, which prevent certain producers, importers, distributors, and stockpilers of water pipe tobacco and electrically-heated cigarettes from meeting previously set deadlines.
The digital tax stamps are meant to allow for digitally tracking products from the manufacturing facility until the products reach the end consumer, ensuring that set standards and criteria are satisfied and that excise tax obligations are met.