UAE Seizes Dh608 Million Worth Of Goods For Tax Violation, Administrative Penalties

2026-04-07 11:16:53

(MENAFN- Khaleej Times) The UAE's Federal Tax Authority (FTA) on Tuesday said it seized goods worth more than Dh608 million for non-payment of taxes and administrative penalties in 2025, up from Dh348 million in 2024, an increase of approximately 75 per cent.

The authority said its intensified control efforts led to the confiscation of 29.5 million non-compliant tobacco packs that did not bear Digital Tax Stamps in 2025, compared to approximately 11 million packs seized in 2024, marking a 169 per cent increase.

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It also seized around 7.6 million non-compliant packs of other excise goods – including carbonated drinks, energy drinks, and sweetened beverages – up from approximately four million packs in 2024, an increase of more than 90 per cent.

Enhanced market monitoring helped detect numerous establishments violating tax laws, with registration notifications issued to non-compliant entities.

176,000 inspections

The FTA said on-ground inspection visits rose 89 per cent to approximately 176,000 across all emirates in 2025, compared to around 93,000 in 2024.

“FTA inspection operations rely on various electronic monitoring mechanisms to prevent the sale, circulation, or storage of products that do not comply with the requirements of Value Added Tax or Excise Tax, as applicable,” said Abdulaziz Al Mulla, Director-General of the FTA.

How fake products are tracked

Al Mulla said a key mechanism is the Tobacco Track and Trace System, which has been continuously developed since its launch more than six years ago. Under this system, Digital Tax Stamps are affixed to tobacco product packs and registered in the Authority's database.

Each stamp contains electronically recorded information that can be scanned using a dedicated device by authorised inspectors to verify that the applicable tax has been paid.

He confirmed that inspection campaigns conducted in 2025 reflect the success of comprehensive oversight plans implemented with precision.

The Authority is also stepping up efforts to support business compliance with tax systems and procedures, treating businesses as strategic partners to promote voluntary compliance and enable informed engagement with the tax system.

Sara Al Habshi, Tax Compliance Executive Director of the Tax Affairs Sector at the FTA, said the regulator is committed to protecting consumers from the circulation of harmful products that do not meet approved quality standards in the UAE.