17.6 million untaxed tobacco, beverage packs seized in UAE, a 144% spike

Dubai: The UAE’s Federal Tax Authority (FTA) intensified its tax enforcement efforts in the first half of 2025, uncovering Dh357.22 million in unpaid excise taxes and fines during 85,500 inspection visits across local markets nationwide.

This represents an 86% increase in tax liabilities uncovered compared to the same period last year when Dh191.75 million was collected. The number of inspections more than doubled, rising 110.7% from 40,580 visits in H1 2024 to 85,500 in 2025.

The FTA seized over 17.6 million packs of non-compliant excise goods during this period, a 144% increase from 7.2 million packs seized in H1 2024. This includes 11.52 million tobacco product packs found without Digital Tax Stamps and not registered in the FTA’s electronic system—more than double last year’s 5.52 million packs.

Additionally, 6.1 million packages of other excise goods, such as soft drinks, energy drinks, and sweetened beverages, were confiscated—over three and a half times the 1.74 million packages seized in the previous year’s first half.

Sara AlHabshi, Tax Compliance Executive Director at the FTA, highlighted the Authority’s commitment to enhancing tax compliance through advanced digital monitoring technologies. These efforts aim to combat tax evasion and protect consumers from unregulated products that do not meet UAE’s quality and tax standards.

“The Authority’s continuous inspection campaigns, conducted in collaboration with relevant agencies, reflect our dedication to improving market oversight and ensuring transparency. These measures prevent the circulation of untaxed and non-compliant goods, safeguarding both the economy and consumers,” AlHabshi stated.

The FTA’s intensified field operations and use of technology represent a strategic approach to uphold tax laws, ensuring a fair and regulated market environment throughout the UAE.