The Federal Tax Authority (FTA) has significantly expanded its tax compliance efforts in 2024, conducting an unprecedented 93,000 field inspection visits across all seven emirates.
This marks a 135.22% increase from the 40,000 inspections conducted in the previous year, highlighting the Authority’s commitment to combating tax evasion and safeguarding consumer rights.
The intensified control campaigns led to the seizure of 11 million packages of non-compliant tobacco products that lacked digital tax stamps, alongside 3.9 million packages of other excise goods such as soft drinks, energy drinks, and sweetened beverages. The total tax dues and fines collected from these inspections exceeded AED 348 million, demonstrating the effectiveness of regulatory measures in detecting and addressing tax violations.
Khalid Ali Al Bustani, Director-General of the FTA, emphasized the importance of these efforts, stating,
"The FTA is intensifying regulatory efforts to monitor taxpayers’ compliance with tax laws, combat tax evasion, and protect consumers from smuggled and counterfeit excise products that do not meet UAE quality standards."
Al Bustani highlighted that the adoption of advanced digital technologies has significantly improved tax compliance levels and enhanced control operations. He also credited strategic collaborations with both government and private sector stakeholders for strengthening market oversight and raising awareness about tax obligations among businesses and consumers.
A key tool in the FTA’s compliance strategy is the ‘digital tax stamp,’ introduced over six years ago. This system ensures that tobacco products meet tax requirements by embedding electronic registration data in a scannable stamp. The initiative enhances inspection and monitoring efforts at customs ports and within the marketplace, preventing the sale of illicit goods and reinforcing the UAE’s commitment to fiscal responsibility and consumer protection.
The FTA remains steadfast in its mission to uphold tax compliance and will continue to implement awareness campaigns, advanced tracking systems, and strategic enforcement measures to foster a transparent and regulated marketplace.
News Source: Emirates News Agency
