UAE seizes 3.58 million excise goods to curb tax evasion

The Federal Tax Authority (FTA) has seized 3.58 million units of non-compliant excise goods across the UAE, according to an official enforcement report released on Sunday, 2 August. The seizures followed a series of 11,812 field inspection visits conducted during the first half of 2026, aimed at curbing the trade of illicit tobacco and sweetened beverages. The inspections resulted in the detection of 1,601 violations, with authorities identifying products that lacked the mandatory Digital Tax Stamps or failed to meet technical specifications. The FTA confirmed that the market value of the confiscated items reached several million dirhams, though the specific total value remains under final audit. Enforcement and Market Compliance The FTA’s inspection teams focused on retail outlets, warehouses, and border points to ensure that all excise goods carried the required digital tracking markers. These stamps are essential for verifying that applicable taxes have been paid and that the products meet UAE health and safety standards. The authority noted that the number of inspections increased by 15% compared to the same period in 2025. The primary categories of seized goods included "red" and "green" labeled cigarettes and tobacco products, as well as various energy and sweetened drinks. Under UAE law, excise tax is applied at a rate of 100% on tobacco and energy drinks, and 50% on sweetened beverages and carbonated drinks. Legal Penalties and Industry Impact Businesses found in…