Dubai suspends 30% tax on alcohol to boost appeal and tourism

Dubai has reportedly dropped a 30% alcohol tax and nixed a license fee requirement that previously needed to purchase alcohol in the tourism and commercial center, revealed two big merchants on social media.

Apparently, the action is anticipated to increase Dubai’s allure to tourists and expatriate residents drawn to the city’s more liberal lifestyles when compared to other Gulf countri犀利士

The revisions went into effect on Sunday and will be tested for a year, according to domestic media.

One of Dubai’s two largest alcohol distributors, MMI, revealed on its Instagram account that buying a favorite alcoholic beverage is now cheaper and simpler than ever with the expulsion of 30% municipality tax as well as a free alcohol license.

It notified that prices at its stores throughout the emirate now represent the reduction of the tax.

Another retailer, African+Eastern, stated on Sunday that the tax was no longer in effect, but that prices would still be subject to a 5% value-added tax (VAT).

After the COVID-19 pandemic, Dubai’s economy quickly recovered as the first nine months of 2022 saw a 4.6% annual growth in GDP.

Considered a major economic pillar, tourism witnessed a more than 180% increase in visitors in the first half of 2022 compared to the same period in 2021.

As the Gulf governments largely rely on taxes to increase non-oil revenue, most of them have implemented VAT.

The UAE does not levy an income tax, but starting in June, profits over 375,000 dirhams ($102,100) will be subject to a 9% corporate tax. Reportedly, Dubai is also facing more regional competition.

For instance, Saudi Arabia is spending billions to improve its appeal to tourists via initiatives, including the Red Sea Project along with hosting important sports and cultural events.

In addition, Qatar is anticipating a boost in tourists post the 2022 World Cup.

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Puja More

Puja More holds a graduate degree in Computer Science from the University of Pune. Nurturing her passion of playing with words however, Puja undertook content writing as a career path and boasts of rich experience in content production, copywriting, and digital marketing. Presently, Puja writes articles on technology, business, and healthcare for and a few similar portals.