Dubai Cuts Its 30% Alcohol Tax to Boost Tourism


The timing of the sudden change has been met with disapproval from some residents who had not too long ago paid for his or her yearly license in full.

Dubai has introduced that it’s scrapping its 30% tax on alcohol gross sales for the remainder of 2023. That is the municipality’s newest step in the direction of strengthening the tourism sector and attracting international residents by way of coverage adjustments.

“Dubai Municipality has briefly stopped accumulating the 30% price from alcoholic beverage firms for a interval of 1 yr from the start of 01/01/2023 to the top of 12/31/2023. The businesses licensed to promote within the Emirate of Dubai have been notified of this choice,” the Dubai Municipality tweeted.

Alcohol is notoriously costly in Dubai. A pint of beer may value about $15 and a glass of wine, $20 or extra. The municipality’s choice is geared toward boosting enterprise amongst vacationers and locals because it aspires to become the “happiest place on Earth.”

“The choice to droop alcohol taxes follows strikes to alter its weekend to Saturday-Sunday and the widening of entry to long-term residency visas. As a collective, these initiatives ought to enhance tourism and encourage extra expatriates to think about Dubai as their dwelling,” Karim Jetha, chief funding officer at Dubai-based asset administration agency Longdean Capital mentioned.

The information was first revealed by native alcohol distributors with Maritime and Mercantile Worldwide (MMI) writing Sunday on its Facebook web page: “Now you can: save 30% municipality tax on alcoholic drinks. We’ve mirrored this throughout all our pricing!” It added that the UAE’s 5% gross sales tax (VAT) nonetheless applies, nevertheless.

Private liquor licenses, a requirement when shopping for alcohol in native retailers, beforehand value 270 dirhams ($73.50) however at the moment are free. Licenses weren’t required when shopping for alcohol in bars, nevertheless. Earlier than the beginning of the yr, the licenses needed to be renewed yearly and took about 4 weeks to be processed. It’s nonetheless unclear if it will stay the case for the free licenses. Because it stands, Dubai is the one emirate within the United Arab Emirates (UAE) that mandates the usage of liquor licenses for in-shop alcohol purchases. In Abu Dhabi and 4 different emirates, no license is required whereas the sale of alcohol is prohibited within the extra conservative emirate of Sharjah.

The timing of the sudden change has been met with disapproval from some residents who had not too long ago paid for his or her yearly license in full. Usually, nevertheless, the information was acquired favorably. It comes at a time when neighboring Saudi Arabia is working laborious at taking the UAE’s spot because the area’s tourism and business capital.

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Mercy Tukiya Mutanya

Mercy Mutanya is a Tech fanatic, Digital Marketer, Author and IT Enterprise Administration Scholar.
She enjoys studying, writing, doing crosswords and binge-watching her favorite TV collection.



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