The Federal Tax Authority has seized and confiscated 7.26 million non-compliant excise goods in the first half of 2024, with 5.52 million packs of tobacco and tobacco products found to be violating tax obligations. This number is lower than the 7.92 million non-compliant packs seized in the first half of 2023. Additionally, 1.74 million units of other excise goods were seized, compared to 971,690 units in the previous year.
The total number of seized excise goods in 2023 was 8.89 million products, with 1,330 registration notices issued to non-compliant establishments. This marked a significant increase from the 573 notices issued in the same period of 2023. The FTA is intensifying its oversight activities in local markets to combat tax evasion, protect consumer rights, and ensure compliance with tax legislation and procedures.
The FTA relies on advanced electronic monitoring processes during inspection visits to prevent the sale, trade, or storage of non-compliant products. The ‘Marking Tobacco and Tobacco Products Scheme’ requires Digital Tax Stamps to be placed on tobacco product packages. A total of 40,580 field inspection visits were conducted in the first six months of 2024, up from 17,310 visits in the same period of 2023.
The visits aim to ensure taxpayer compliance with tax laws such as issuing tax invoices, displaying full prices inclusive of tax, and paying due taxes on products traded in UAE markets. Khalid Ali Al Bustani, Director-General of the FTA, emphasizes the Authority’s efforts to enhance market oversight and prevent the sale of contraband products. The FTA collaborates closely with strategic partners to improve inspection activities and expand their scope across all regions of the UAE.
In the first half of 2024, 6,210 violations were reported during inspection visits, a significant increase from the 1,740 violations in the same period of 2023. The number of compliant establishments verified also doubled, indicating an improvement in compliance levels due to the Authority’s oversight efforts and tax awareness campaigns. The FTA is committed to enhancing market oversight, ensuring tax compliance, and preventing tax evasion in UAE markets.
