Over 17.6 million untaxed packages of tobacco and beverages confiscated in the UAE, marking a significant increase of 144%
UAE's Federal Tax Authority Intensifies Enforcement Efforts, Seizes Record Number of Non-Compliant Goods
The UAE's Federal Tax Authority (FTA) has stepped up its field operations and the use of technology to ensure compliance with tax laws, creating a fair and regulated market environment throughout the country.
In the first half of 2025 (H1 2025), the FTA conducted a record 85,500 inspections, seizing a total of 17.6 million packs of non-compliant excise goods. These inspections more than doubled compared to the same period last year.
The seized goods primarily consisted of soft drinks, energy drinks, and sweetened beverages, as well as over 11.52 million tobacco product packs without Digital Tax Stamps and not registered in the FTA's electronic system.
Sara AlHabshi, Tax Compliance Executive Director at the FTA, emphasised the Authority's commitment to enhancing tax compliance through advanced digital monitoring technologies. She stated that these measures prevent the circulation of untaxed and non-compliant goods, safeguarding both the economy and consumers.
Despite the lack of publicly available data on the increase in unpaid excise taxes collected by the FTA in H1 2025 compared to H1 2024, the record seizures suggest stronger enforcement efforts, which could imply higher collection of unpaid taxes or penalties.
The FTA's efforts in H1 2025 resulted in the collection of Dh357.22 million in unpaid excise taxes, marking an 86% increase compared to the same period last year. The seizure of non-compliant excise goods also saw a 144% increase compared to the previous year's first half.
AlHabshi further stated that the FTA's efforts aim to combat tax evasion and protect consumers from unregulated products that do not meet UAE's quality and tax standards. The Authority's continuous inspection campaigns, conducted in collaboration with relevant agencies, reflect the Authority's dedication to improving market oversight and ensuring transparency.
However, official Ministry of Finance updates do not provide relevant excise tax collection comparisons for this period. For more precise statistics, consulting official UAE Federal Tax Authority reports or contacting the Ministry of Finance directly may be necessary.
- The increased enforcement efforts by the UAE's Federal Tax Authority (FTA) in H1 2025 have made headlines in the general news, highlighting the Authority's strict adherence to business and finance regulations.
- The use of advanced technology by the FTA to monitor and enforce tax laws has significantly impacted the environment and economy, creating a level playing field for legitimate businesses in UAE's market.
- The record seizure of non-compliant excise goods by the FTA indicates that the Authority is closely monitoring the news on political developments in the tax compliance sector, taking swift action against tobacco products and sweetened beverages lacking Digital Tax Stamps or registration in the electronic system.
- The FTA's focus on combating tax evasion and ensuring quality and tax standards in UAE becomes a talking point in technology discussions, as the use of digital monitoring systems is seen as a step forward in finance and business regulation.
