UAE delays tobacco tax reform plan

by:WOYU     2020-09-21
The Emirates News Agency recently announced that the UAE’s Federal Revenue Service has decided that due to the new crown pneumonia epidemic, the original effective date of the mandatory installation of digital tax receipts for tobacco products and waterpipes, which is an important node of the 'Tobacco Labeling and Tobacco Product Program', will take effect from 2020. Postponement from June 1 to January 1, 2021. After the implementation of the plan, tobacco products and hookahs without digital tax receipts shall not be stored, transported and supplied.

The Federal Revenue Service explained that the postponement of the plan is to cope with the challenges posed by the current epidemic. Some waterpipe and e-cigarette manufacturers, importers, distributors and stockists cannot complete their tasks within the originally set deadline.

It is understood that the UAE has imposed excise taxes on commodities harmful to health, such as carbonated drinks, energy drinks and tobacco products, in October 2017. From November 1, 2019, e-cigarettes, hookahs and sugary beverages are also included in the scope of consumption tax. The collection of excise taxes on tobacco products is achieved through the 'Tobacco and Tobacco Product Labeling Program'. On March 1, 2020, as part of the second phase of the 'Tobacco Labeling and Tobacco Products Program', the import of waterpipe and electrically heated cigarettes without digital tax receipts has been banned.
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