FTA collects Dhs357 million in taxes, fines in H1 2025

The Federal Tax Authority (FTA) has intensified its oversight efforts this year by conducting inspection campaigns across markets in the UAE, in cooperation with the relevant authorities. These efforts aim to enhance tax compliance, protect consumer rights, and combat tax evasion to ensure adherence to tax laws and procedures.

 In a press release issued today, the FTA announced that its inspection teams conducted a record of 85,500 field visits during the first half of this year as part of its campaigns which was conducted across local markets nationwide. The number of inspections increased by 110.7%, compared to the first half of 2024, during which 40,580 visits were conducted.

 The Authority also clarified that the total value of taxes and fines collected during these inspections reached Dhs357.22 million, a significant rise from Dhs191.75 million collected during the same period in 2024. This represented an increase of 86.29%.

 The Authority indicated that during field inspection visits related to excise tax in the first half of 2025, over 17.6 million non-compliant excise goods were seized, compared to 7.2 million in the same period of 2024, resulting in an increase of 144.44%. It further explained that 11.52 million packs of non-compliant tobacco products lacking Digital Tax Stamps and not registered in the Authority’s electronic system were confiscated – more than double the 5.52 million non-compliant packs seized during the same period last year, marking a 108.7% increase.

 Additionally, the FTA seized 6.1 million other non-compliant excise goods, including soft drinks, energy drinks, and sweetened beverages. This figure is over 3.5 times higher than the 1.74 million packages of such goods seized in the first half of 2024, showing an increase of more than 250%.

 Sara AlHabshi, the Tax Compliance Executive Director of the Tax Affairs Sector at the FTA, emphasised the Authority’s intensified efforts to monitor taxpayers' adherence to tax laws and procedures across all transactions. These efforts aim to combat tax evasion and protect consumers from the illegal circulation of taxable products that fail to meet approved quality standards in the market.

 She stated, “The Authority utilises the latest digital technologies which continually enhances tax compliance and improve the efficiency of regulatory actions. These technologies are critical in monitoring and inspecting smuggled goods that fail to meet tax requirements for circulation in the UAE market.”

 AlHabshi further explained, “The Authority is committed to conducting continuous inspection campaigns across UAE markets, in cooperation with relevant authorities and strategic partners. This is part of our broader mission to strengthen market oversight. These efforts rely on control mechanisms that ensure the highest standards of governance and transparency, while improving the efficiency of inspection operations, with the aim of preventing the sale, circulation, or storage of products that violate tax legislation.”

 WAM