Dubai Scraps 30% Tax On Alcohol Sales Amid Economic Rebound

By: Trademagazin editor Date: 2023. 01. 11. 09:38

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Dubai has suspended a tax of 30% on alcohol and dropped a licence fee previously needed to buy alcohol in the commercial and tourism hub, two major retailers said on social media.

The move is expected to further boost the appeal of Dubai to tourists and expatriate residents drawn by its more liberal lifestyle, compared to other Gulf cities.

The changes took effect on January 1 to run for a trial period of a year, domestic media said.

The impact of the tax cut on prices will take time to filter through as stocks were purchased prior to 31 December, the date the government announced the decision.

“With the removal of 30% municipality tax and a free alcohol licence, buying your favourite drinks is now easier and cheaper than ever,” MMI, one of two major purveyors of alcohol in Dubai, said on its Instagram account. Prices in its stores across the emirate reflect the removal of the tax, it added.

Another retailer, African+Eastern, confirmed the tax no longer applied, but prices would remain subject to a 5% value added tax (VAT).

ESM