The UAE's Federal Tax Authority (FTA) has seized of over 3.5 million unauthorised and illegal excise goods during a recent raid at a facility in Dubai.

The inspection by FTA officials uncovered a large-scale smuggling operation involving fake tobacco and beverage products concealed within shipments of clothing and footwear.

The total tax due on these items was estimated at Dh133.2 million. The FTA confirmed that all illegal goods have been permanently confiscated, a tax assessment has been completed, and fines have been imposed. Legal action has also been taken against the non-compliant establishments.

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The confiscated goods 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

• 4,600 packs of excise beverages

According to the FTA, the operation is part of ongoing efforts to combat tax evasion, ensure compliance with UAE tax laws, and protect consumers. The illegally imported products were in clear violation of the country's excise tax regulations.

Federal authorities emphasised that 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.

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