Excise tax violations in UAE led to a massive seizure operation in Dubai, according to the Federal Tax Authority (FTA). Officials confiscated over 3.5 million non-compliant excise goods. The tax value of these goods totaled an estimated Dh133.2 million.
During the inspection, the FTA discovered large quantities of illegal products in a concealed storage site. The warehouse was being used to hide tobacco and beverages inside clothing and footwear shipments. Authorities confirmed this was a deliberate attempt to avoid UAE excise tax laws.
Specifically, the seizure included 1.56 million packs of cigarettes and 1.77 million packs of electronic smoking devices. Additionally, inspectors found 111,360 packs of raw tobacco and 4,000 packs of hookah tobacco. They also confiscated 121 packs of nicotine pouches and 4,600 packs of taxable beverages.
As a result, the authorities officially seized all the confiscated items and issued tax assessments and financial penalties to the violating parties. Moreover, legal proceedings have already started against those responsible for the infractions.
Consequently, the FTA is closely monitoring excise tax violations in UAE. This action forms part of the authority’s broader strategy to fight tax evasion. Furthermore, it also aims to ensure regulatory compliance across markets and protect consumers from illegal goods.
To clarify, the FTA stressed that all businesses must follow Federal Law No. 7 of 2017 and its amendments. Companies involved in producing, importing, or storing excise goods must comply fully. Otherwise, they face significant fines and legal consequences.
To support enforcement, the FTA uses modern digital technologies. These include electronic tax stamps embedded with traceable information. In turn, these stamps help authorities verify whether products have had the proper excise tax applied.
Importantly, this Dubai-based operation was conducted with support from several local and federal agencies. The FTA confirmed that cooperation among government bodies is essential for success.
Looking ahead, excise tax violations in UAE will continue to face strict scrutiny. Authorities remain committed to cross-emirate compliance and using technology to detect tax-related fraud. Therefore, they urge all businesses to comply promptly to avoid serious consequences.
