The Federal Tax Authority has intercepted a range of contraband excise goods that were being smuggled by a business in Dubai. This entity was found to be packaging and concealing excise items in a deceitful manner with the intention to illegally circulate them in the local market. The discovery was made during an operation conducted by a team of inspectors from the authority.
In a press release, the authority disclosed that its ongoing efforts to combat tax evasion and improve tax compliance, as well as consumer protection, resulted in locating the establishment that hid illegal excise products within shipments of clothing and footwear to divert them into the local market.
All seized excise goods have been secured, and a tax assessment along with penalties related to the violations has been issued. It was reported that the total number of contraband excise items confiscated exceeded 3.5 million packages, including 1.56 million cigarette packs, 1.77 million packs of electronic smoking devices, 111,360 raw tobacco packs, 4,000 shisha tobacco packs, 121 nicotine pouch packs, and 4,600 packs of excise beverages. The tax dues for these items amounted to 133.2 million dirhams, and legal actions have been taken against the non-compliant business.
The authority noted that this initiative is part of the ongoing regulatory efforts carried out in collaboration with relevant entities and emphasized the necessity for businesses—producers, importers, and storers of excise goods—to adhere to tax regulations in compliance with Federal Law No. (7) of 2017 concerning excise tax and its amendments, to avoid penalties and legal consequences for non-compliance.
Furthermore, the Federal Tax Authority has implemented advanced electronic monitoring mechanisms based on best practices. Among these measures is the attachment of tax stamps on tobacco and related products, which contain electronically registered information that the inspectors verify to ensure tax obligations are met. The authority reaffirmed its commitment to enhancing cooperation and coordination with all relevant federal and local government agencies to ensure tax compliance across all Emirates of the country.