Major Dubai tax raid: 3.5 million illegal excise goods worth Dh133 million seized

Dubai: The Federal Tax Authority (FTA) has announced the seizure of more than 3.5 million non-compliant excise goods during a recent inspection operation in Dubai, with tax liabilities estimated at Dh133.2 million.

According to the FTA, the illegal products were found in a storage facility where tobacco and beverage goods were fraudulently packaged and concealed within clothing and footwear shipments in an attempt to bypass UAE excise tax laws.

The seizure included:

All seized items have been confiscated, and tax assessments and fines have been applied. The FTA confirmed that legal action has been initiated against the parties responsible for the violations.

This enforcement action is part of the FTA’s ongoing efforts to combat tax evasion, ensure market compliance, and protect consumer interests, the authority said in a statement.

The authority emphasised that all businesses involved in producing, importing, or storing excise goods must comply with Federal Law No. 7 of 2017 on Excise Tax and its amendments to avoid heavy fines and penalties.

To support enforcement, the FTA said it uses advanced digital systems, including electronic tax stamps that contain traceable data to confirm whether excise tax has been correctly applied to products like tobacco and related items.

The operation was carried out in coordination with other local and federal government entities, and the FTA reiterated its commitment to maintaining cross-emirate compliance and leveraging technology to identify and address tax violations.