ABU DHABI, (Pakistan Point News - 13th Jul, 2021) The Federal Tax Authority (FTA) has intensified its inspection campaigns in the local markets in collaboration with the Ministry of Economy, the Federal Customs Authority and other competent authorities to ensure compliance with tax legislation and procedures, as well as protecting consumers from trafficked products that do not meet quality specifications approved within the UAE.
In a press release issued today, the FTA announced that its teams conducted 2,226 field inspections in local markets during the second quarter of this year, through 23 campaigns that were conducted throughout the seven emirates in collaboration with relevant government entities. During these visits, 655 tax violations valued at AED71.48 million were detected.
FTA Director-General, Khalid Ali Al Bustani, said that specialised teams, in cooperation with the concerned authorities, conduct inspection campaigns throughout the year to protect consumers and combat tax evasion. During Ramadan, the authority intensified its inspections campaigns in collaboration with the competent authorities to enhance its control in markets, as many violations were discovered and appropriate legal measures were taken.
Al Bustani confirmed that protecting consumers and their rights, as well as preserving the country’s rights, are at the top of FTA priorities. "The FTA is keen to implement the best global practices regarding the application of tax legislation and procedures, which have clearly defined mutual obligations between the authority and taxpayers, through accurate control mechanisms that provide the highest standards of governance and transparency using cutting-edge technologies and smart programmes to enhance the effectiveness and efficiency of inspections."
Sara Al Habshi, Director of the FTA’s Tax Compliance and Enforcement Department, revealed that the field inspections conducted during the second quarter of 2021 detected 2.86 million unregistered tobacco products that did not bear the Digital Tax Stamp (DTS), in addition to 202,000 other Excise Goods, including carbonated beverages, energy drinks, and sweetened drinks.
Al Habshi stressed that all inspection campaigns carried out by the FTA are conducted using sophisticated, cutting-edge control mechanisms to prevent the sale, circulation, and stockpiling of products that have not fulfilled their Excise or Value Added Tax (VAT) obligations. One of these mechanisms is the placement of DTSs, which are registered in the FTA database on tobacco products. Each DTS contains data that can be read with a special device to make sure that all taxes due on the products have been paid.