UAE’s FTA postpones ban on e-cigarettes, waterpipes without digital tax stamp until 2021

The UAE’s Federal Tax Authority will postpone a ban on the supply, transfer, storing and possession of water pipe tobacco and e-cigarettes that don’t have digital tax stamps until January 1, 2021, it was announced on Tuesday.

The ban had been previously scheduled to come into effect on June 1, 2020.

The scheme is aimed at protecting consumers from commercial fraud and low-quality products, as well as safeguard public health and combat tax evasion.

According to the FTA, the deadline was extended as a result of the challenges brought on by the economic impact of the Covid-19 pandemic, which prevents many producers, importers, distributors and stockpilers of water pipes.

“The extension of the timeline provides them with seven additional months to prepare for the mandatory implementation of the ban,” said FTA director-general Khaled Ali Al Bustani. “It also comes in response to the concerns expressed by stakeholders in the tobacco sector.”

“The decision provides them enough time to sell off any remaining tobacco products that do not carry the digital tax stamps,” he added.

The import of water pipe tobacco and e-cigarettes that do not carry the digital tax stamp was banned on March 1, 2020.

The digital tax stamps allow for digital tracking of designated products from their manufacturing facility through to when they reach end consumers.