UAE seizes 8.45m non-compliant tobacco and drink products in six-month tax drive

Dubai: UAE tax authorities seized 8.45 million non-compliant excise products, including tobacco, energy drinks and sweetened beverages, during the first half of 2026, following more than 103,000 inspections across local markets.

The Federal Tax Authority said tax liabilities and administrative penalties associated with the seized goods exceeded Dh174 million during the six months to June.

Inspection teams carried out approximately 103,680 visits across all emirates, up 21% from around 86,000 during the same period last year, as authorities stepped up checks aimed at tax compliance, consumer protection and tax evasion.

Tobacco dominates seizures

Tobacco and tobacco products accounted for 6.58 million of the non-compliant packages confiscated during the first half, compared with 15.8 million a year earlier.

A further 1.87 million packages of other excise goods were seized, including carbonated drinks, energy drinks and sweetened beverages. That was up from 1.7 million packages during the first half of 2025.

Total seizures were lower than the 17.6 million non-compliant products confiscated during the corresponding period last year, despite the higher number of inspections.

More businesses flagged over VAT registration

The FTA also issued 3,343 registration notices to people who were not registered for Value Added Tax during the first half, compared with 2,845 notices during the same period last year.

Inspectors check whether businesses issue tax invoices for sales, display prices inclusive of tax and pay the tax due on products sold in the market. The inspections are also used to identify potential tax evasion and other breaches of tax legislation.

Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, said the enforcement effort also targets smuggled, low-quality and counterfeit goods.

“The Authority continues its efforts to enhance market supervision and prevent smuggled products from entering the UAE’s markets. These efforts aim to maintain high levels of compliance with tax legislation and procedures, which clearly define the obligations of the Authority and taxable persons. The Authority is also fully committed to protecting consumers, combating commercial fraud, and preventing the trade of low-quality and counterfeit products that negatively affect quality of life.”

Inspections step up across UAE

The FTA said its enforcement work is carried out with federal and local authorities, using information-sharing, monitoring systems and logistical support to conduct inspections across the country.

Al Mulla said, “The close and ongoing cooperation between the Authority and its strategic partners from the relevant federal and local entities is a key factor in enhancing the efficiency, speed, and effectiveness of regulatory operations across all areas of the UAE. This is achieved through the exchange of information and the utilisation of the advanced capabilities available to the relevant entities, including qualified personnel, logistical support services, and monitoring and tracking systems that comply with international best practices.”

The Authority said the inspections will continue to focus on compliance with tax rules while preventing non-compliant and illicit goods from circulating in UAE markets.