Federal Tax Authority (FTA) inspectors have seized over 3.5 million unauthorised excise goods from a facility in Dubai, where tobacco and beverage products were being smuggled into the UAE market through fraudulent packaging and concealment.
The operation uncovered an illegal cache of excise goods hidden within shipments of clothing and footwear, violating UAE tax regulations.
UAE tax authorities foil smuggling operation
The seized items 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 FTA confirmed that all seized excise goods have been permanently confiscated, a tax assessment conducted, and fines applied.
The tax due on these products equated to AED 133.2 million, with legal action 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,” the FTA said in a statement.
The FTA revealed it uses advanced electronic control mechanisms in its battle against tax evasion, including digital tax stamps on tobacco and tobacco-related products.
Each stamp contains electronically registered data, which FTA inspectors verify to ensure appropriate tax has been paid.
The authority further stressed its commitment to enhancing coordination and cooperation with all federal and local government entities to ensure compliance with tax laws across all seven emirates of the UAE, following international best practices.
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