Friday August 26, 2022

Tobacco establishment shutdown for violating tax regulations worth Dhs91 million in Dubai

Tobacco establishment shutdown for violating tax regulations worth Dhs91 million in Dubai

Picture used for illustrative purposes.

Rlixa, Staff Reporter

The Federal Tax Authority (FTA) carried out an inspection campaign in collaboration with the General Department of the Federal Criminal Police at the Ministry of Interior and Dubai Police General Headquarters – represented by the General Directorate of Criminal Evidence and Criminology (Department of Anti-Economic Crime) – which led to the foreclosure of a commercial establishment in the Emirate of Dubai that was trading tobacco products unmarked with Digital Tax Stamps.

In a press statement issued today, the FTA revealed that all products in violation at the establishment were confiscated – a total of 5,430,356 packs with Dhs91,833,016.40 in due taxes.

The Authority implemented the necessary legal measures against the non-compliant establishment, as part of its efforts to strengthen control over markets in order to combat tax evasion, promote tax compliance, and protect consumers.

The Authority indicated that the joint campaign forms part of its continuous efforts to monitor the market, in collaboration with the relevant authorities.

The FTA called on all business sectors – including producers, importers, and stockpilers of tobacco and tobacco products – to comply with tax legislation in accordance with Federal Law No. (7) of 2017 on Excise Tax in order to avoid fines and penalties for non-compliance with tax laws and legislations.

The Federal Tax Authority stressed that its inspection campaigns use sophisticated digital control systems aimed at preventing the sale, circulation, or stockpiling of any type of product where due taxes have not been paid.

One of these systems consists of applying Digital Tax Stamps on the packaging of tobacco and tobacco products. The Stamps are registered in the FTA’s database; each of them stores information that can be read with a special device used by authorised inspectors, allowing them to verify that all due taxes on said products have been paid.

The Authority reaffirmed its commitment to enhancing collaboration and coordination with all relevant federal and local government entities in order to ensure tax compliance across all seven emirates.

 

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