FTA Decision FTA Decision No. 2 of 2019 Federal Tax Authority

FTA Decision 2/2019 — Marks on water pipe tobacco and heated cigarettes (consolidated 2026)

Federal Tax Authority Decision No. 2 of 2019 on Implementing the Marking Tobacco and Tobacco Products Scheme

In force — amended Issued 28 April 2019 In force from 1 November 2019

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Official Arabic title
قرار الهيئة الاتحادية للضرائب رقم (2) لسنة 2019 — تطبيق نظام وضع العلامات المميزة على التبغ ومنتجات التبغ
Document type
FTA Decision
Number
2
Issued by
Federal Tax Authority
Issued
28 April 2019
In force from
1 November 2019
Applies to
Importers and Producers of water pipe tobacco and electrically heated cigarettes, and anyone supplying, transferring, storing or possessing them in the State.
Current position
In force with amendments. The FTA consolidated text of September 2026 includes FTA Decision 5/2020 (in-State ban on unmarked goods moved to 1 January 2021) and FTA Decision 18/2026 (fee per Mark reduced from AED 0.084 to AED 0.036 from 1 January 2027). The new-design Marks timetable for the same goods is set by FTA Decision No. 3 of 2021.
Topics
Excise Tax · Tobacco marking
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Extends the tobacco Marking scheme to water pipe tobacco and electrically heated cigarettes. Marks could be ordered from 1 November 2019, unmarked imports were barred from 1 March 2020 and unmarked goods could not be supplied, transferred, stored or possessed in the State from 1 January 2021. The Importer or Producer pays a fee per Mark before issue (AED 0.084, reduced to AED 0.036 from 1 January 2027) and must store Marks securely and keep records of the quantities held.

What it means in practice Professional insight

Who: importers, producers and traders of shisha (water pipe) tobacco and heated cigarettes. What to check: that all stock in the UAE carries valid Marks, the fee per Mark applying on the order date, and the storage security and stock records for unused Marks.

Key provisions

  • Art. 1(1) For this decision, "Designated Excise Goods" means Water Pipe Tobacco and electrically heated cigarettes.
  • Art. 1(2)–(4) Marks are available for order by the Importer or Producer of Designated Excise Goods from 1 November 2019; importing Designated Excise Goods without Marks into the State is not permitted from 1 March 2020; supplying, transferring, storing or possessing them in the State without Marks is not permitted from 1 January 2021 (as amended by FTA Decision No. 5 of 2020; originally 1 June 2020).
  • Art. 2 "Water pipe tobacco" means any product imported, produced or cultivated in the State that would be classified as "Water pipe tobacco" within Schedule 24 of the Unified Customs Tariff for the GCC States.
  • Art. 3 The fee for the purchase of Marks is AED 0.036 for each Mark, paid by the Importer or Producer before the Marks are issued to him (reduced from AED 0.084 by FTA Decision No. 18 of 2026, shown on the cover of the consolidated text as effective from 1 January 2027).
  • Art. 4 Marks must be stored securely before being affixed: no access by unauthorised personnel, records of the quantity of Marks held, protection from substances or elements that could compromise their physical integrity, and measures against unauthorised use, duplication, copying or tampering; the person storing Marks provides the information, data and records the Authority requests.
  • Art. 5 Effective from 1 November 2019.

What changed

  1. 28 April 2019 Issued
  2. 1 November 2019 In force
  3. 11 May 2020 Amended by FTA Decision 5/2020 — Unmarked shisha tobacco and heated cigarettes banned from 1 January 2021 — Art. 1(4)
  4. 15 September 2026 Amended by Federal Tax Authority Decision No. 18 of 2026 (effective 1 January 2027)

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 17 August 2017 Federal Decree-Law FDL 7/2017 — Excise Tax Law In force — amended
    1. 24 September 2017 Cabinet Decision CD 37/2017 — Excise Tax Executive Regulation — Executive Regulation of this law In force — amended
      1. 17 June 2025 FTA Decision FTA Decision 6/2025 — Natural shortage of excise goods in a Designated Zone (consolidated 2026) — Made under it In force — amended
    2. 24 September 2017 Cabinet Decision CD 38/2017 — Excise goods, rates and the Excise Price (repealed) — Made under Arts. 2, 3 Repealed
    3. 24 July 2018 Cabinet Decision CD 42/2018 — Marking tobacco and tobacco products (tax stamps) — Made under it In force
      1. 6 November 2018 FTA Decision FTA Decision 3/2018 — Tobacco marking scheme: dates, fee per Mark and storage (consolidated 2026) — Made under it In force — amended
      2. 28 April 2019 FTA Decision FTA Decision 2/2019 — Marks on water pipe tobacco and heated cigarettes (consolidated 2026) — Made under it In force — amended
        1. 11 May 2020 FTA Decision FTA Decision 5/2020 — Unmarked shisha tobacco and heated cigarettes banned from 1 January 2021 — Amends Art. 1(4) In force
      3. 1 May 2019 Cabinet Decision CD 33/2019 — Penalties for tobacco marking (tax stamp) violations — Made under it In force
      4. 30 August 2021 FTA Decision FTA Decision 3/2021 — New-design Marks for cigarettes and water pipe tobacco (consolidated 2026) — Made under it In force — amended
    4. 4 August 2019 Cabinet Decision CD 52/2019 — Excise goods, rates and the Excise Price (repealed) — Made under Arts. 2, 3 Repealed
      1. 29 September 2019 Ministerial Decision MD 236/2019 — Customs codes and concentrate Excise Price under CD 52/2019 (repealed) — Made under Arts. 4, 5, 13, 17 Repealed
      2. 28 April 2021 FTA Decision FTA Decision 1/2021 — Calculating the average retail selling price of excise goods — Made under Art. 14(2) In force
      3. 3 January 2025 Ministerial Decision MD 1/2025 — Customs codes and concentrate Excise Price under CD 52/2019 — Made under Arts. 4, 5, 13 In force
      4. 22 September 2025 Ministerial Decision MD 249/2025 — Smoking cessation products excluded from tobacco products — Made under Art. 3(2) In force
    5. 4 August 2019 Cabinet Decision CD 55/2019 — Minimum Excise Price for tobacco products (repealed) — Made under it Repealed
      1. 29 September 2019 Ministerial Decision MD 237/2019 — Start date of the minimum Excise Price for tobacco (1 December 2019) — Made under Art. 3 Spent
    6. 27 November 2025 Cabinet Decision CD 197/2025 — Excise goods, rates and amounts, and the Excise Price — Made under Arts. 2, 3 In force
      1. 12 December 2025 FTA Decision FTA Decision 10/2025 — Sugar content of drink concentrates without reliable guidelines — Made under it In force
    7. 12 December 2025 FTA Decision FTA Decision 11/2025 — Additional cases for deducting excise tax — Made under Art. 16(1)(d) In force
    8. 24 July 2026 Cabinet Decision CD 137/2026 — Minimum Excise Price for tobacco products and e-liquids — Made under it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

Book a consultation

General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.