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The Federal Tax Authority said in a statement that a team of its inspectors working alongside Dubai Police uncovered the unauthorised goods at a facility in Dubai. The products had been deliberately hidden inside shipments of clothing and footwear to facilitate their illegal entry into the UAE market in violation of excise tax rules. All seized items have been permanently confiscated after a tax assessment was completed and fines imposed with legal proceedings now advancing against the responsible parties. The authority highlighted that the total tax due on the consignment reached AED 133.2 million.
According to the Federal Tax Authority the seized packages broke down into 1.56 million packs of cigarettes and 1.77 million packs of electronic smoking devices and accessories. The inventory further encompassed 111,360 packs of raw tobacco in addition to 4,000 packs of hookah tobacco plus 121 packs of nicotine pouches and 4,600 packs of excise beverages. The statement confirmed that the combined total exceeded 3.5 million items.
The Federal Tax Authority stated that the action forms part of its ongoing efforts to combat tax evasion and enhance compliance while safeguarding consumers from non-compliant products. It conducts such inspections in partnership with local and federal authorities including the Dubai Police to maintain effective oversight of the excise goods sector. The authority employs advanced electronic control mechanisms including digital tax stamps on tobacco items that contain data allowing inspectors to confirm whether the correct taxes have been paid. Producers importers and stockists must adhere to Federal Law No. 7 of 2017 on Excise Tax to avoid penalties.
Federal Tax Authority figures show that the authority performed 176,000 market inspection visits throughout 2025 marking an 89 percent increase compared with the previous year. These inspections enabled the confiscation of 29.5 million tobacco packs without digital tax stamps representing a 169 percent rise from 2024 levels. In the same period approximately 7.6 million additional non-compliant packs of other excise goods were also seized by the authority.
The Federal Tax Authority reminded all producers importers and stockists of excise goods that they must fully comply with the provisions of Federal Law No. 7 of 2017 on Excise Tax and its subsequent amendments. Failure to do so exposes them to significant penalties fines and legal consequences as demonstrated in the recent Dubai case. The authority further stressed the importance of continued coordination with government partners across all seven emirates to strengthen enforcement of tax regulations.
In the announcement on its website the Federal Tax Authority noted that its efforts utilise best international practices to detect and deter smuggling activities that undermine the tax system. The successful raid in Dubai has led to the removal of the illicit goods from potential circulation in local markets. This forms part of a wider pattern of enforcement that saw similar volumes intercepted across the year.
