FTA Reports AED 357 Million Collected In Taxes And Fines During First Half Of 2025

The Federal Tax Authority (FTA) has ramped up its inspection efforts in the UAE this year, collaborating with relevant bodies to ensure tax compliance. These initiatives focus on safeguarding consumer rights and tackling tax evasion by enforcing adherence to tax laws and procedures.

During the first half of this year, the FTA's inspection teams carried out 85,500 field visits across local markets nationwide. This marked a 110.7% increase compared to the same period in 2024, which saw 40,580 inspections. The total taxes and fines collected during these visits amounted to AED357.22 million, reflecting an 86.29% rise from AED191.75 million collected in the first half of 2024.

In the first half of 2025, over 17.6 million non-compliant excise goods were seized by the FTA during field inspections, a significant jump from 7.2 million in the same timeframe last year, representing a 144.44% increase. Among these were 11.52 million packs of tobacco products lacking Digital Tax Stamps and not registered in the Authority’s electronic system—more than double the previous year's figure of 5.52 million packs.

The FTA also confiscated 6.1 million other non-compliant excise goods such as soft drinks, energy drinks, and sweetened beverages. This number is more than three times higher than the 1.74 million packages seized in the first half of 2024, indicating an increase exceeding 250%.

Sara AlHabshi, Executive Director of Tax Compliance at the FTA's Tax Affairs Sector, highlighted their intensified efforts to monitor taxpayer adherence to tax laws across all transactions. She stated that these measures aim to combat tax evasion and protect consumers from illegal taxable products that do not meet approved quality standards.

AlHabshi noted, "The Authority utilises the latest digital technologies which continually enhances tax compliance and improve the efficiency of regulatory actions." These technologies are crucial for monitoring smuggled goods that fail to meet tax requirements for circulation in UAE markets.

Commitment to Continuous Market Oversight

AlHabshi further explained that continuous inspection campaigns are conducted across UAE markets in collaboration with relevant authorities and strategic partners as part of their broader mission to strengthen market oversight. "These efforts rely on control mechanisms that ensure the highest standards of governance and transparency," she added.

The FTA aims to enhance inspection operations' efficiency while preventing sales or storage of products violating tax legislation through these initiatives.

With inputs from WAM