The UAE has stepped up its efforts to combat tax evasion, conducting 93,000 tax inspections across all seven emirates in 2024. This marks a significant 135% increase from the previous year, highlighting the country’s commitment to boosting tax compliance and protecting consumers.
Focus on Counterfeit Products
In partnership with relevant authorities, the Federal Tax Authority (FTA) intensified its market surveillance, focusing on counterfeit tobacco and soft drinks. The FTA’s inspections led to the seizure of 11 million packages of non-compliant tobacco products that lacked “digital tax stamps.” Additionally, 3.9 million packages of excise goods, including soft drinks, energy drinks, and sweetened beverages, were confiscated.
Tax Dues and Fines Surpass AED 348 Million
The FTA’s efforts have led to the detection of numerous violations, with a total value of AED 348 million ($95 million) in tax dues and fines seized during the inspections. These actions contributed significantly to maintaining market integrity and consumer safety.
Khalid Ali Al Bustani, Director-General of the FTA, emphasized the importance of regulatory efforts to monitor tax compliance. He noted that the authority’s use of digital technologies, including the “digital tax stamp,” has been essential in streamlining inspection operations and reducing tax evasion.
The FTA’s collaboration with both government and private sector partners has further improved market control and raised awareness of tax compliance across the UAE.
Our Recommendation for You: Sharjah Imposes 20% Tax on Resource Firms
