UAE Cracks Down on Illicit Excise Goods

Record Seizure of Illicit Excise Goods in First Half of 2025

The United Arab Emirates' Federal Tax Authority (FTA) seized more than 17.6 million pieces of excise goods not compliant with tax regulations in the first six months of 2025. Significant amounts of tobacco products, soft drinks, energy drinks, and sugary beverages were confiscated during inspections, which did not meet the standards.

Record Inspections and Fines

Between January and June, 85,500 on-site inspections were conducted, representing a 110.7% increase compared to the same period last year. As a result of the actions taken, tax and fine revenue of 357.22 million dirhams was collected, compared to the recorded 191.75 million dirhams in 2024, marking an 86.29% growth.

Illegal Tobacco Products

Among the seized goods, 11.52 million packs of tobacco products without a digital tax stamp were notable, which were not recorded in the FTA's electronic system. This is more than double the 5.52 million packs confiscated in the first half of 2024. The Digital Tax Stamp System was introduced in 2019, allowing each package to be tracked from production or import to sale, ensuring tax payment and reducing smuggling and counterfeiting.

Seizure of Beverage Products

Inspectors also confiscated 6.1 million bottles and cans of non-compliant beverage products, more than three and a half times the 1.74 million seized in the first half of 2024. Under the UAE's excise tax law, carbonated drinks, energy drinks, and sugary drinks are taxed to reduce consumption. From 2026, sugar content-based taxation will replace the flat tax rate.

Technological Support in Inspections

The FTA employs advanced digital tracking systems, which make the detection and removal of illegal goods from the market more efficient. The authority highlighted that nationwide inspections will continue, aiming to protect consumers and ensure businesses comply with regulations.

This outcome clearly demonstrates that UAE authorities are placing increased emphasis on protecting excise tax revenues and maintaining market cleanliness, while modern technology plays a crucial role in curbing violations.

(Source of the article: Federal Tax Authority (FTA) Announcement.)