The Federal Tax Authority has intensified its oversight activities this year by conducting inspection campaigns across markets nationwide in collaboration with relevant agencies. The goal is to enhance tax compliance, protect consumer rights, and combat tax evasion, ensuring adherence to tax regulations and procedures.
During the first half of the year, inspection teams from the authority carried out 85,500 field visits to local markets across all Emirates, marking an impressive growth of 110.7% compared to the 40,580 visits conducted in the same period of 2024.
The authority indicated that the total amount of tax dues and fines linked to excise goods identified during these field inspections reached 357.22 million dirhams, compared to 191.75 million dirhams for the same timeframe in 2024, reflecting an increase of 86.29%.
Furthermore, the inspections regarding the excise tax in the first half of 2025 resulted in the seizure of over 17.6 million non-compliant boxes and packages of excise goods. This represents a significant rise from the 7.2 million boxes and packages found during the first half of 2024, an increase of 144.44%.
Among the seized items, 11.52 million boxes of tobacco products lacking digital tax stamps and not registered in the authority’s electronic system were confiscated. This figure is more than double the non-compliant tobacco products caught in the same period last year, which totaled 5.52 million boxes, indicating a rise of 108.7%.
Additionally, the authority reported the seizure of 6.1 million non-compliant packages of other excise goods, including soft drinks, energy drinks, and sweetened beverages. This is over 3.5 times the amount seized during the first six months of 2024, where 1.74 million packages of other excise goods were found, representing an increase of more than 250%.
Sarah Al Habshi, the Executive Director of the Tax Compliance Sector at the Federal Tax Authority, emphasized that the authority is ramping up its oversight efforts to ensure tax obligations are followed in all transactions and to combat tax evasion. It also aims to protect consumers from products subject to tax that do not meet approved quality standards.
Al Habshi highlighted that the authority employs the latest digital technologies in its oversight procedures, contributing to continuous improvement in tax compliance and enhancing the efficiency and effectiveness of regulatory efforts. These technologies are utilized in monitoring, inspections, and tracking unpaid excise tax products.