UAE Tobacco Tax Stamp Scheme Update: FTA Decision No. 18 of 2026 Changes Fees and Marking Timelines

The UAE Federal Tax Authority (FTA) has introduced important amendments to the Marking Tobacco and Tobacco Products Scheme through Federal Tax Authority Decision No. 18 of 2026, issued on 15 September 2026.

The UAE tobacco tax mark amendments 2026 affect businesses involved in the import, production and handling of cigarettes, electrically heated cigarettes and water pipe tobacco. The most significant changes include a reduction in the fee for purchasing tax marks, the introduction of a new tax mark design, and a detailed transition schedule for phasing out marks carrying the old design.

The amendments have different implementation dates depending on the provision. The consolidated FTA decisions show Decision No. 18 of 2026 taking effect from 1 October 2026 for the amended mark-design framework under Decision No. 3 of 2021, while the revised mark fee reflected in Decisions No. 3 of 2018 and No. 2 of 2019 applies from 1 January 2027. 

For tobacco manufacturers, importers, distributors and other businesses handling designated excise goods, these dates should now form part of their 2026–2028 compliance planning.

What Is the UAE Tobacco Marking Scheme?

The UAE tobacco marking regime requires specific excise goods to carry approved tax marks. These marks form part of the regulatory controls surrounding tobacco products and help identify products that have passed through the applicable excise compliance framework.

Under the amended Decision No. 3 of 2021, Designated Excise Goods include:

• all cigarettes, whether normal or electrically heated; and
• water pipe tobacco intended for smoking in a water pipe and meeting the description specified in the Decision. 

Earlier decisions separately addressed cigarettes and water pipe tobacco. Decision No. 3 of 2018 applies to all types of cigarettes, while Decision No. 2 of 2019 addressed water pipe tobacco and electrically heated cigarettes. 

Key Amendment 1: Tax Mark Fee Reduced to AED 0.036

One of the most commercially relevant changes is the reduction in the fee payable for purchasing tax marks.

The amended fee is:

AED 0.036 per Mark

The fee must be paid by the importer or producer before the marks are issued.

For cigarettes, Article 2 of FTA Decision No. 3 of 2018 now states that the fee is AED 0.036 for each mark. The amendment note confirms that Decision No. 18 of 2026 reduced the previous fee from AED 0.084 to AED 0.036. 

The same reduction applies under Decision No. 2 of 2019 for the designated products covered by that decision. The updated Article 3 specifies AED 0.036 per mark, with the amendment note again confirming the reduction from AED 0.084. 

Why does the fee change matter?

Businesses purchasing large quantities of marks should update their costing models, excise compliance processes and mark-ordering budgets.

For example, a company purchasing one million marks would see the mark fee calculated using AED 0.036 per mark once the updated fee becomes applicable, instead of the previous AED 0.084 rate.

Companies should nevertheless ensure that the correct rate is applied according to the relevant effective date and transaction period.

Key Amendment 2: New Tax Mark Design

Decision No. 3 of 2021 has also been amended to introduce a new design for tax marks.

The Decision states that marks with the new design are approved and that approval will be withdrawn from marks carrying the old design.

Rather than requiring businesses to change immediately, the FTA has established a phased transition covering requests, issuance, imports, UAE production, returns of unused marks and the eventual prohibition of products carrying old marks.

UAE Tax Mark Transition Timeline

Businesses should pay particular attention to the following dates:

15 December 2026

This is the last day for payment of fees due on requests for marks carrying the old design. 

Businesses with outstanding requests should therefore review whether payments connected with old-design marks need to be completed before this deadline.

31 December 2026

The FTA will stop issuing and supplying marks with the old design. 

This effectively closes the old-mark issuance process before the new system starts.

1 January 2027

The FTA will begin:

• receiving requests for new-design marks;
• issuing the new marks; and
• supplying the new marks.

The updated fees will also apply as part of this transition. 

For importers and producers, this is a critical operational date because mark procurement procedures should be aligned with the new design from the beginning of 2027.

30 June 2027

This is both:

• the last day to import Designated Excise Goods bearing marks of the old design; and
• the last day to produce Designated Excise Goods bearing old-design marks in the UAE. 

Importers should therefore review shipments scheduled around this date, while local producers should monitor production plans and remaining stocks of old-design marks.

15 July 2027

This is the last day for returning unused old-design marks. 

Businesses holding unused marks should maintain accurate inventory records and establish an internal process to identify and return remaining old marks within the required timeframe.

Earlier of 30 June 2028 or the Date of Expiry

The amended schedule ultimately prohibits the supply, transfer, storage or possession in the UAE of Designated Excise Goods bearing old-design marks at the earlier of:

• 30 June 2028, or
• the product’s relevant date of expiry. 

This means businesses should not treat June 2027 as the end of the transition. Stock already produced or imported using old-design marks will also need to be monitored during the subsequent sell-through period.

Existing Tax Mark Storage Controls Remain Important

The amendments do not remove the existing security obligations surrounding physical tax marks.

Under the marking decisions, marks must be securely stored before being affixed to designated excise goods. The minimum controls include:

• restricting access to unauthorized personnel;
• keeping records showing the quantity of marks held;
• protecting marks from substances or conditions that could damage their physical integrity; and
• protecting marks against unauthorized use, duplication, copying or tampering. 

Equivalent storage requirements are also included in Decision No. 2 of 2019. Businesses should therefore ensure that transitioning from old marks to new marks does not weaken existing inventory controls.

What Should UAE Tobacco Businesses Do Now?

Businesses affected by the marking scheme should use the transition period to review their processes rather than waiting until the final deadlines.

A practical readiness review should include:

1. Identify products covered by the marking scheme and confirm whether they fall within the designated excise goods definitions.
2. Review existing old-design mark inventory, including unused marks and marks already attached to finished goods.
3. Check outstanding mark requests and payment dates before 15 December 2026.
4. Update mark procurement procedures for the new design from 1 January 2027.
5. Update budgets and costing systems to reflect the AED 0.036 mark fee.
6. Review 2027 import and production schedules to avoid old-design marks being used beyond 30 June 2027.
7. Create a process for returning unused old-design marks before 15 July 2027.
8. Track finished goods carrying old marks through the final supply, storage and possession deadline.
9. Maintain proper mark records and security controls throughout the transition.

Businesses operating across manufacturing, importing, warehousing and distribution functions should coordinate these steps across tax, finance, operations, customs and supply-chain teams.

What the FTA Amendments Mean for Businesses

FTA Decision No. 18 of 2026 introduces more than a simple fee adjustment.

The amendments establish a structured migration to a new tax mark design while giving businesses defined periods to manage existing orders, production, imports, unused marks and old-mark inventory.

The immediate compliance priorities are the 15 December 2026 payment deadline, the 31 December 2026 end of old-mark issuance, and the 1 January 2027 launch of new-design marks and updated fees.

Companies dealing in cigarettes, electrically heated cigarettes or water pipe tobacco should map the full timeline through 2028 and ensure their excise tax controls, inventory records and supply-chain processes are updated accordingly.

FAQS About UAE Tobacco Tax Mark Amendments 2026

1. What is the new UAE tobacco tax mark fee?

The amended fee is AED 0.036 for each mark, reduced from AED 0.084. 

2. When will the new UAE tobacco tax marks start?

Requests, issuance and supply of marks carrying the new design begin on 1 January 2027. 

3. When will the FTA stop issuing old-design tax marks?

Issuance and supply of old-design marks will stop on 31 December 2026. 

4. How long can businesses import tobacco products with old tax marks?

The last day for importing Designated Excise Goods carrying old-design marks is 30 June 2027. 

5. When must unused old tax marks be returned?

Unused marks carrying the old design must be returned by 15 July 2027. 

6. Which products are covered by the amended marking scheme?

The amended Decision covers normal cigarettes, electrically heated cigarettes and qualifying water pipe tobacco. 

Conclusion

The amendments introduced through FTA Decision No. 18 of 2026 update three key decisions governing the UAE’s tobacco marking scheme: FTA Decision No. 3 of 2018, FTA Decision No. 2 of 2019, and FTA Decision No. 3 of 2021. Together, the changes reduce the tax mark fee to AED 0.036 per mark, introduce a new mark design, and establish a clear transition timetable for phasing out old-design marks.

The amendments apply to cigarettes, electrically heated cigarettes, and qualifying water pipe tobacco, with important compliance dates running from December 2026 through June 2028. Businesses involved in importing, producing, storing, or supplying designated excise goods should review their mark inventories, payment schedules, production and import plans, and internal compliance controls to ensure a smooth transition to the new requirements.

Disclaimer: This article is for general informational purposes only and is based on the Federal Tax Authority decisions referenced above. It should not be considered tax, legal or regulatory advice. Businesses should review their specific facts, the applicable Arabic legislation and current FTA guidance before taking compliance action.