The Federal Tax Authority announced yesterday an increase in the number of field inspection visits carried out by its specialized teams in cooperation with relevant authorities, reaching approximately 176,000 inspection visits last year in local markets across all emirates of the country. This represents a yearly increase of about 89% compared to 2024, when the authority carried out around 93,000 visits. The authority confirmed enhancing its efforts to combat tax evasion, increase tax compliance levels, and protect consumer rights. In a statement, the authority explained that continuous inspection efforts resulted in the seizure of 29.5 million non-compliant tobacco product packages that do not bear 'digital tax stamps' during 2025, compared to about 11 million non-compliant packages seized in 2024, an increase of 169%. It added that approximately 7.6 million non-compliant packages of other selective goods, including carbonated drinks, energy drinks, and sweetened beverages, were seized, compared to about four million non-compliant packages of other selective goods seized in 2024, an increase of over 90%. The authority stated that the total value of tax dues and related penalties seized during inspection visits conducted in 2025 exceeded 608 million dirhams, compared to 348 million dirhams in 2024, an increase of about 75%. The Director General of the Federal Tax Authority, Abdulaziz Mohammed Al Mulla, said: 'The authority continues its intensive efforts to effectively contribute to supervising local markets in cooperation with relevant authorities to ensure compliance with tax legislation and procedures.' He added: 'Inspections rely on various electronic control mechanisms to prevent the sale, trading, or storage of products that are not subject to Value Added Tax or Excise Tax. Among these mechanisms is the 'special marking system on tobacco and its products,' which has seen continuous development since its launch over six years ago. Digital tax stamps are affixed to tobacco product packages and are registered in the authority's database. Each stamp contains electronically registered information that can be read by a special device used by authorized inspectors to verify the payment of tax on these products.' Al Mulla confirmed that the results of inspection campaigns carried out during 2025 confirm the success of comprehensive inspection plans implemented with precision, as the authority intensifies its efforts to help business sectors comply with tax systems and procedures. In turn, the Executive Director of the Tax Compliance Sector at the Federal Tax Authority, Sarah Al Habshi, said: 'The authority is keen to protect consumers from the infiltration of harmful products that do not meet the country's approved quality standards, and it also combats tax evasion through the precise implementation of tax legislation and procedures that have clearly defined all mutual obligations between the authority and taxpayers, while fully focusing on protecting consumers by tightening control over the country's markets'.
