Federal Tax Authority: Over 3.5 million non-compliant excise goods are seized

Tax liabilities on non-compliant goods amount to AED 133 million

Dubai, UAE – 14 July 2025: During an operation conducted by a team of Federal Tax Authority (FTA) inspectors, a number of unauthorised excise goods were recently seized from a facility in Dubai, where fraudulently packaged and concealed tobacco and beverage products were being purposefully smuggled into the UAE market.

As part of its ongoing commitment to combat tax evasion, enhance tax compliance, and safeguard consumers, the FTA inspection team successfully uncovered the UAE-based operation, which was concealing an illegal cache of excise goods within shipments of clothing and footwear – in clear violation of UAE tax regulations.

The FTA clarified that all seized excise goods have now been permanently confiscated, a tax assessment conducted, and corresponding fines have also been applied. The total number of illegal goods seized exceeded 3.5 million items. These included 1.56 million packs of cigarettes, 1.77 million packs of electronic smoking devices and accessories, 111,360 packs of raw tobacco, 4,000 packs of hookah tobacco, 121 packs of nicotine pouches, and 4,600 packs of excise beverages.

The tax due on these products was equivalent to AED 133.2 million, and legal action has been taken against the non-compliant establishments.

The FTA stated that this operation is part of continuous monitoring efforts it undertakes in collaboration with the relevant local and federal authorities, and emphasised that – in order to avoid penalties and fines for non-compliance – producers, importers, and stockists of excise goods must adhere to the tax regulations set forth in Federal Law No. 7 of 2017 on Excise Tax and its amendments.

In line with best international practices, the FTA confirmed that in its battle against tax evasion, it uses the latest advanced electronic control mechanisms, including the application of digital tax stamps on tobacco and tobacco-related products.

Each stamp contains electronically registered data, which FTA inspectors verify to ensure the appropriate tax has been paid. The FTA also stressed its commitment to enhancing coordination and cooperation with all relevant federal and local government entities to ensure compliance with tax laws – across all seven emirates of the UAE.