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Federal Tax Authority Intensifies Efforts, Seizes 7.26 Million Non-Compliant Tobacco Products in First Half of 2024

The Federal Tax Authority (FTA) has significantly increased its market oversight activities, resulting in the seizure of 7.26 million non-compliant tobacco products and other excise goods during the first six months of 2024. In a concerted effort to combat tax evasion and enhance compliance with tax legislation, the FTA conducted 40,580 field inspection visits across all emirates, a 134% increase from the same period last year.

The FTA's intensified actions included 109 inspection campaigns, aimed at ensuring adherence to tax laws, particularly in issuing tax invoices, displaying prices inclusive of tax, and preventing the sale of contraband products. This period saw a marked improvement in compliance, with 30,710 establishments verified as compliant, a 111% increase from the first half of 2023.

H.E. Khalid Ali Al Bustani, Director General of the FTA, emphasized the importance of these efforts in protecting consumer rights and maintaining market integrity. He highlighted the strategic collaboration with federal and local entities, which has enhanced the efficiency and scope of the Authority’s inspection activities.

Sara AlHabshi, Executive Director of the Tax Affairs Sector at the FTA, noted the role of advanced electronic monitoring in these inspections, particularly through the 'Marking Tobacco and Tobacco Products Scheme,' which uses Digital Tax Stamps to ensure compliance. The first half of 2024 saw 6,210 violations detected, a 256% increase compared to the same period in 2023.

The FTA's continued vigilance has led to the confiscation of millions of non-compliant products, including tobacco and other excise goods, underscoring the Authority's commitment to upholding tax laws and protecting consumers in the UAE.

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