Federal Tax Authority Boosts Inspection Visits To 93,000 In 2024 To Combat Tax Evasion

The Federal Tax Authority (FTA) has intensified its efforts to protect consumer rights by enhancing control measures to combat tax evasion and boost compliance in the UAE. In collaboration with relevant authorities, the FTA aims to ensure adherence to tax laws across the nation.

In 2024, the FTA conducted 93,000 field inspections across all seven emirates, marking a significant increase of 135.22% compared to the previous year's 40,000 visits. These inspections are part of a broader strategy to enforce tax compliance and identify violations.

During these inspections, the FTA seized 11 million packages of tobacco products lacking 'digital tax stamps'. Additionally, 3.9 million packages of other excise goods, such as soft drinks and energy drinks, were confiscated for non-compliance within the same period.

The total value of taxes and fines collected during these operations exceeded AED 348 million. This highlights the effectiveness of market surveillance in identifying establishments violating tax laws, leading to registration notices for offenders.

Khalid Ali Al Bustani, Director-General of the FTA, stated that regulatory efforts are being intensified to monitor taxpayer compliance with tax laws. "The FTA is intensifying its regulatory efforts to monitor taxpayers' compliance with tax laws across all their transactions," he said.

Al Bustani emphasized that adopting digital technologies has significantly improved tax compliance levels. These technologies enhance control operations by tracking and inspecting smuggled or non-compliant products more efficiently.

Strategic Partnerships and Digital Solutions

The FTA's strategic partnerships with government and private sector stakeholders have also played a crucial role in improving market control effectiveness. These collaborations raise tax awareness among businesses and communities alike.

Al Bustani highlighted the importance of 'digital tax stamps', introduced over six years ago as an effective measure against tax evasion. "These stamps, known as digital stamps, are placed on tobacco product packages and are registered in the FTA's database," he explained.

The digital stamps contain electronically registered information readable by special devices, confirming tax payments on products. This system aids inspection at customs ports and markets while preventing sales of non-compliant goods.

The FTA remains committed to raising awareness through campaigns encouraging self-compliance among taxpayers. By continuing these efforts, they aim to safeguard consumers from counterfeit excise products that fail to meet UAE quality standards.

With inputs from WAM