The municipality tax of 30 percent on alcohol sales in Dubai is set to be suspended. It is anticipated that the move will further increase Dubai’s appeal as a relatively liberal tourist destination in the region.
The annual license fee of AED 270 (€70) that was previously required to purchase alcohol for domestic consumption will also be lifted after the trial period of one year.
The MMI says that buying your favorite drinks is now easier and cheaper than ever, thanks to the elimination of a municipality tax of 30 percent and a free alcohol license. The MMI said in a statement that the tax has been taken out of the prices it sells in its stores across the emirate.
African+Eastern, a different retailer, also confirmed that the tax had been removed, but that prices would still be subject to 5% VAT.
In the meantime, Dubai is well-known for its high alcohol prices, with a pint costing approximately 45 AED (€11) in many hotel bars.
It is unlikely that the tax break will result in a 30% discount at Dubai bars, despite the fact that liquor stores like MMI are passing the discount directly on to customers.
Time Out Dubai says that prices will go up because of an increase in corporate tax and the need to move stock. Some bars say that drinks will cost 4 AED (€1) on average.
Meanwhile, Dubai residents must submit an application for an alcohol license with their Emirates ID in order to purchase alcohol for home consumption. Until the end of 2023, this is now free.
In Dubai, tourists can also apply for a free 30-day license in liquor stores by bringing their original passport. An individual permit isn’t expected to drink at authorized cafés, inns and bars.
Dubai’s economy relies heavily on tourism, and visitor numbers increased by more than 180% in the first half of 2022 compared to the same period in 2021.
With initiatives like the Red Sea Project, which will include hotels, residential properties, leisure facilities, and entertainment, Saudi Arabia, for instance, is investing billions to enhance its tourism appeal. Major sporting and cultural events are also held in a number of Middle Eastern nations.
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