emirates7 - During a recent operation led by inspectors from the Federal Tax Authority (FTA), a large quantity of unauthorized excise goods was seized from a facility in Dubai. The products—fraudulently packaged and hidden—were being illegally brought into the UAE market, including tobacco and beverages concealed within clothing and footwear shipments, in clear breach of the country’s tax laws.
This action forms part of the FTA’s broader efforts to tackle tax evasion, boost tax compliance, and protect consumers. The inspection team successfully exposed the smuggling operation, which had been attempting to bypass excise tax regulations.
According to the FTA, all the confiscated products have now been permanently seized, a tax assessment has been carried out, and penalties imposed. In total, over 3.5 million illicit items were recovered. These included approximately 1.56 million cigarette packs, 1.77 million packs of electronic smoking devices and accessories, 111,360 packs of raw tobacco, 4,000 packs of shisha tobacco, 121 nicotine pouch packs, and 4,600 packs of excise beverages.
The total excise tax due on these goods amounted to AED 133.2 million. Legal measures have been initiated against the violating entities.
The FTA underscored that this operation is part of its ongoing surveillance initiatives conducted in cooperation with both federal and local authorities. It reminded all producers, importers, and traders of excise goods to comply with Federal Law No. 7 of 2017 on Excise Tax and its amendments to avoid fines and legal consequences.
To align with global standards, the FTA employs advanced digital control systems to detect tax evasion. One such measure includes the use of digital tax stamps on tobacco and related products, each containing electronically stored data that allows inspectors to verify proper tax payment.
The FTA reaffirmed its commitment to working closely with relevant authorities across all seven emirates to ensure strict enforcement of tax laws and full compliance within the excise sector.
This action forms part of the FTA’s broader efforts to tackle tax evasion, boost tax compliance, and protect consumers. The inspection team successfully exposed the smuggling operation, which had been attempting to bypass excise tax regulations.
According to the FTA, all the confiscated products have now been permanently seized, a tax assessment has been carried out, and penalties imposed. In total, over 3.5 million illicit items were recovered. These included approximately 1.56 million cigarette packs, 1.77 million packs of electronic smoking devices and accessories, 111,360 packs of raw tobacco, 4,000 packs of shisha tobacco, 121 nicotine pouch packs, and 4,600 packs of excise beverages.
The total excise tax due on these goods amounted to AED 133.2 million. Legal measures have been initiated against the violating entities.
The FTA underscored that this operation is part of its ongoing surveillance initiatives conducted in cooperation with both federal and local authorities. It reminded all producers, importers, and traders of excise goods to comply with Federal Law No. 7 of 2017 on Excise Tax and its amendments to avoid fines and legal consequences.
To align with global standards, the FTA employs advanced digital control systems to detect tax evasion. One such measure includes the use of digital tax stamps on tobacco and related products, each containing electronically stored data that allows inspectors to verify proper tax payment.
The FTA reaffirmed its commitment to working closely with relevant authorities across all seven emirates to ensure strict enforcement of tax laws and full compliance within the excise sector.