The Federal Tax Authority (FTA) and Dubai Police seized more than 3.58 million non-compliant excise goods packages across the UAE in the first half of 2026, identifying Dh82.06 million in tax dues and penalties tied to the confiscated products.
The joint inspections, conducted with the General Department of Criminal Investigation at Dubai Police, resulted in 3,587,315 packages seized and 59 seizure reports filed against businesses and individuals.
What was seized and why it matters
The FTA Dubai Police excise goods seizure operation targeted products subject to excise tax: tobacco, electronic smoking devices and liquids, energy drinks, and sweetened beverages. Under Cabinet Decision No. 52 of 2019, as amended by Decision No. 99 of 2025, tobacco products, electronic smoking devices and accessories, and energy drinks carry a 100% excise tax rate.
Sweetened drinks moved to a new framework on 1 January 2026. Under the Tiered Volumetric Model introduced by Cabinet Decision No. 197 of 2025, the tax per litre is linked to sugar content: Dh1.09 per litre for high-sugar drinks (eight grams or more per 100ml), Dh0.97 per litre for medium-sugar drinks (five grams to under eight grams per 100ml), and zero for low-sugar or artificial-sweetener-only products. The former carbonated drinks category has been abolished; taxability now depends solely on sugar content.
Excise tax was first introduced in the UAE on 1 October 2017, covering tobacco and energy drinks at 100% and carbonated beverages at 50%. The scope expanded on 1 December 2019 to include sweetened drinks and electronic smoking devices.
Scale of enforcement in context
The H1 2026 figures sit against a broader enforcement effort. During the full year 2025, the FTA conducted 175,500 field inspection visits across all emirates, seizing 29.5 million non-compliant tobacco packs that lacked Digital Tax Stamps and were not registered in the authority’s electronic system, plus 7.6 million non-compliant packages of other excise goods including carbonated drinks, energy drinks, and sweetened beverages, according to the FTA’s 2025 annual report.
FTA Director General Abdulaziz Al Mulla said cooperation with Dubai Police had strengthened tax controls by improving detection of violations and enabling legal action against offenders. Al Mulla added that sharing expertise and using modern technology in inspections had raised oversight efficiency.
Sara Al Habshi, Executive Director of the FTA’s Tax Compliance Sector, said the authority encourages the public to report suspected tax evasion through its Raqeeb platform, an electronic tool developed to receive and process reports on non-compliant individuals or entities engaged in tax evasion. Al Habshi said increased monitoring is also under way to prevent non-compliant products from circulating in the UAE market.
The FTA said joint inspection campaigns with enforcement agencies will continue, with businesses handling excise goods kept under ongoing monitoring for compliance with tax legislation.
