The Federal Tax Authority (FTA) has intensified its oversight efforts in the UAE by conducting extensive inspection campaigns across local markets. In cooperation with relevant authorities, the FTA aims to improve tax compliance, protect consumer rights, and fight tax evasion. During the first half of 2025, FTA inspection teams carried out 85,500 field visits nationwide, marking a 110.7% increase compared to 40,580 visits during the same period in 2024. As a result, the Authority collected AED357.22 million in taxes and fines, up 86.29% from AED191.75 million collected in the first half of last year.
Seizures of Non-Compliant Excise Goods Surge
The FTA reported a significant rise in confiscated excise goods during field inspections. Over 17.6 million non-compliant excise products were seized in the first half of 2025, a 144.44% increase from 7.2 million in the same period of 2024. This included 11.52 million packs of tobacco products without Digital Tax Stamps or registration in the Authority’s electronic system, more than doubling the 5.52 million packs seized last year. Additionally, 6.1 million other non-compliant excise goods—such as soft drinks, energy drinks, and sweetened beverages—were confiscated, which is over 3.5 times higher than the 1.74 million packages seized in the first half of 2024.
Ongoing Commitment to Strengthen Tax Compliance
Sara AlHabshi, Tax Compliance Executive Director at the FTA, highlighted the Authority’s ongoing efforts to monitor adherence to tax laws across all transactions. She said, “The Authority utilises the latest digital technologies which continually enhances tax compliance and improve the efficiency of regulatory actions.” AlHabshi also noted the importance of these technologies in detecting smuggled goods that fail to meet tax requirements. Furthermore, she explained that the FTA will continue conducting regular inspections in partnership with other authorities to uphold governance and transparency. The goal remains to prevent the sale, circulation, or storage of products violating tax laws, protecting both the market and consumers.
