In the first half of 2024, the Federal Tax Authority confiscated 7.26 million non-compliant excise goods, which included 5.52 million packs of tobacco and tobacco products that failed to meet tax obligations, a decrease from the 7.92 million seized in the first half of 2023. Additionally, 1.74 million units of other non-compliant excise goods, such as soft drinks, energy drinks, and sweetened beverages, were seized, an increase from the 971,690 units in the same period of 2023. The total number of excise goods seized in the first half of 2023 was 8.89 million. Furthermore, 1,330 registration notices were issued to non-compliant establishments, up from 573 notices in the same period of 2023.
The Federal Tax Authority has ramped up its market oversight activities in partnership with relevant entities to combat tax evasion and ensure compliance with tax laws. Sara AlHabshi, Executive Director of the Tax Affairs Sector at the FTA, explained that the Authority's inspection visits utilize advanced electronic monitoring to prevent the sale or storage of products that do not fulfill Excise or Value Added Tax obligations. The 'Marking Tobacco and Tobacco Products Scheme' mandates the use of Digital Tax Stamps on tobacco product packages, which are recorded in the Authority's database and can be verified by authorized inspectors.
During the first six months of 2024, the Authority conducted 40,580 field inspection visits across 109 campaigns in all emirates, a significant increase from the 17,310 visits in 105 campaigns during the same period in 2023. These visits are aimed at ensuring taxpayer compliance with tax laws, including the issuance of tax invoices and the payment of due taxes. Khalid Ali Al Bustani, Director-General of the FTA, emphasized the Authority's efforts to enhance market oversight and prevent the sale of contraband products through close collaboration with strategic partners.
The inspection visits in the first half of 2024 resulted in 6,210 violations, a substantial increase from the 1,740 violations in the same period of 2023. Additionally, the number of compliant establishments verified nearly doubled to 30,710, up from 14,540 in the first half of 2023, indicating a significant improvement in compliance levels.
