Indirect Tax News - January 2023

Digital Stamps Scheme for cigarettes sold in local market

Bahrain’s Digital Stamps Scheme, which applies as from 16 October 2022, requires all cigarette products available for sale, trading, supply or possession in Bahrain to have digital stamps. The scheme aims to track excise goods from the manufacturing stage up to the point of consumption and is intended to protect consumers against the circulation of counterfeit or illegal products and ensure the effective collection of revenue.

The Bahrain tax authorities have urged all importers and traders to avoid storing large quantities of cigarette products without digital stamps as any sale, circulation, possession or supply of cigarettes without digital stamps is prohibited since 16 October.

Any product in the supply chain that does not have the digital stamp must be returned to be destroyed or moved for sale outside Bahrain to avoid administrative penalties or criminal penalties for excise tax evasion.

Vijay Chandra