Dubai to reinstate 30% alcohol sales...

Tax was lifted in January 2023 for limited period

Dubai is set to reinstate a 30% tax on alcohol from 1 January 2025, according to retailer African + Eastern.

In January 2023, Dubai Municipality announced a plan to remove the tax on alcohol sales in the emirate for 12 months. This was later extended until the end of December 2024.

“Dubai Government have informed us that the 30% municipality tax on alcoholic beverage purchases will be reinstated, effective January 2025,” reported the retailer in an email to hospitality stakeholders.

“This will be effective on all orders invoiced from Wednesday 1 January 2025. Dubai Municipality requests all necessary systems are in place to ensure full compliance with this fee.”

During the tax break, only a limited number of outlets passed the saving made onto customers, so consumer impact will be most keenly felt when purchasing alcohol directly from retailers, as opposed to in hotels, restaurants and bars.

One hotelier suggested the move might provide an advantage to some hoteliers. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, told Dubai's Khaleej Times newspaper: “A tax to be reimposed serves as an opportunity for outlets operating within hotels. In our case, we may see guests visiting more often now, [rather] than relying on direct purchases from retail stores, as we will still be offering discounted rates and deals on alcohol.”

For more information, visit www.africaneastern.com

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