UAE’s FTA Doubles Down: 85,500 Inspections, Dh357 Million Collected in H1 2025
The UAE’s Federal Tax Authority (FTA) made its mark in the first half of 2025. It doubled inspections and raked in Dh357.22 million in taxes and fines. The push was clear: boost compliance, protect consumers, and squash tax evasion.
That Dh357 million haul isn’t just a bigger number , it’s indeed a massive 86% jump from the same period last year. Behind it were 85,500 inspections carried out across every emirate, more than twice the 40,580 checks in early 2024. This scale of enforcement, paired with record seizures of non-compliant goods, shows how aggressively the FTA is moving to tighten tax compliance in the UAE’s evolving regulatory landscape.
Inspection Campaign Surge
The FTA’s inspection teams have been everywhere this year. In the first six months of 2025, they carried out 85,500 field visits. That’s not just a busy schedule, it’s 110.7% more checks than in the same period last year, when the number stood at 40,580.
This wasn’t confined to one hotspot. The campaign stretched across all seven emirates, from big commercial hubs to smaller markets. Inspectors targeted retailers, warehouses, distribution centres, and any corner of the supply chain where non-compliant goods could appear.
The sheer volume of visits signals intent. It shows a national-scale operation that leaves little room for tax evasion to hide. Whether you run a small shop in Fujairah or a logistics hub in Dubai, the message is the same: the FTA is watching, and it’s watching everywhere.
Significant Increase in Tax Collection
The inspections didn’t just make noise. They brought in money. In the first half of 2025, the FTA collected Dh357.22 million in taxes and fines. That’s Dh165 million more than the same period last year, an 86 per cent jump.
It’s not a small gain. It’s a big injection into national revenue, the kind that funds services, infrastructure, and future projects. And it sends a clear message: if you dodge tax rules in the UAE, you’ll pay—one way or another.
Seizure of Non-Compliant Excise Goods
Non-Compliant goods have no relaxation this time. They were seized with the greatest zeal. The FTA nabbed over 17.6 million packs of illegal or dodgy excise goods. That’s up 144.4% from 7.2 million packs in the previous year.
Breakdown:
- 11.52 million tobacco packs without digital tax stamps or registration—double the previous year’s 5.52 million.
- 6.1 million excise goods—soft drinks, energy drinks, sweetened beverages—3.5 times more than the 1.74 million seized in H1 2024.
These aren’t minor infractions. They’re wholesale attempts to bypass regulation.
Technology and Inspection Strategies
FTA has used the latest technologies in its recent operations. Sending out its people would not have been enough. Especially when technology is so advanced and businesses can easily evade the old policies and catching mechanisms.
FTA decided to lean on digital monitoring tools to track down smuggled and untaxed products effectively. That includes smart scanning and tracking systems integrated into field operations
The goal was simple – Transparent markets. Better consumer protection. Cleaner compliance.
Sara AlHabshi, Tax Compliance Executive Director at the FTA, put it in human terms:
“We use the latest digital tech to strengthen compliance and boost action speed. Continuous inspections – with partners across the UAE – raise governance and transparency. We’re focused on keeping non-compliant products off our shelves.”
Wider Tax Environment in UAE 2025
This crackdown comes against a backdrop of broader reform. UAE is strengthening its business environment. New Corporate tax rolled out in 2023. Mandatory e-invoicing is now active. Firms are navigating a new landscape in tax compliance. There is no room for tax evasion anymore. The UAE is trying to build a safe and trustworthy safe haven for international businesses and tax compliance is a big part of the process.
FTA is sending a message: flouting the rules won’t be tolerated in this new era.
Conclusion
FTA’s crackdown in H1 2025 was no half-step. Doubled inspections. Dh357 million collected. 17.6 million excise goods seized. It’s enforcement powered by tech and resolve. Tax compliance matters. It funds services, keeps markets clean, and protects people. Expect FTA to stay sharp and keep pressure high through the second half of 2025.
