UAE seizes goods worth Dh192 million over tax violations

Dubai - Goods seized during inspections include tobacco products, soft and energy drinks.

(File photo used for representational purpose)
(File photo used for representational purpose)

By Web Report

Published: Sun 14 Feb 2021, 4:13 PM

The UAE’s Federal Tax Authority (FTA) on Sunday said Dh191.83 million worth of goods were confiscated last year due to violations of the local tax regulations.

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The seized goods were subject to excise tax.

The authority seized 9.4 million packs of cigarettes that didn’t carry the digital tax stamps; 14,000kg of Hookah tobacco products; and more than 803,000 packets of other selective goods, including soft, energy and sweetened drinks; electronic smoking devices and tools and liquids used in them.

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The products were seized during inspection campaigns in cooperation with the departments of economic development and private sector players.

The campaign is aimed at strengthening market inspections and also ensure compliance with legislation and tax procedures.

The FTA said implementation of excise tax has achieved many "remarkable successes" such as building a safe and healthy society by reducing the consumption of harmful goods.

Khalid Ali Al Bustani, Director-General of FTA, said the authority prioritises consumers' protection from harmful products that do not meet the UAE’s regulations and standards while actively combating tax evasion.

"The FTA's inspections rely on various field and electronic procedures that prevent the sale, circulation, and stockpiling of products that have not fulfilled their excise tax or value-added tax (VAT) obligations," Al Bustani explained.

"These procedures include the 'Marking Tobacco and Tobacco Products Scheme', which went into effect on January 1, 2019, in line with Cabinet Decision No. (42) of 2018.

"The decision calls for the display of a Digital Tax Stamp on the packaging of tobacco products and registration in the FTA's database. Each stamp contains data that can be read by special devices," he added.

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