Dubai has launched a new electronic tracking system that will use a state-of-the-art digital stamping system to ensure proper tracking of excise tax on its tobacco products. This is as per an awareness meeting that was held in the country, and to be implemented by the state Federal Tax Authority (FTA).
According to the meeting, the system is expected to launch and be effective in 2019, and the system is expected to be an effective force to combat commercial fraud and tax evasion in a bid to support the FTA’s push for proper verification of excise tax payments and the proper implementation of excise tax systems throughout the country.
The meeting itself was spearheaded by Khalid Ali Al Bustani, the FTA Director General, with attendees including representatives from importers and international producers of tobacco, as well as those from both the global company and authority that operates the system. The company to handle the digital stamping, albeit unnamed, is said to also specialist in the creation of digital stamps and bank notes. Aside from the new FTA system, the meeting itself is just part of the FTA’s plans to create partnerships with both the tax stamp system implementation company and tobacco companies, especially in the form of a joint action plan to identify key points in the program’s implementation.
Other matters of discussion included the seamless implementation of the system into various elements of the tobacco industry, effective communication, and efficient problem-solving mechanisms.
The system itself is designed to make sure that excise taxes on cigarettes – and eventually all tobacco-based products – are collected properly. The stamps themselves will be in turn attached to said products for monitoring and tracking, which makes it an efficient and modernized way to combat tax evasion.
The system is expected to be much more efficient when combined with other forms of security, such as inspections, and monitoring markets and customs to prevent the sale of unpaid products. The stamps are to be placed on product packaging for proper monitoring and counting. The data in the stamps themselves are tax-related, and can only be read by special devices.
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