Dubai government has cancelled its 30 percent alcohol tax to boost tourism in the emirate.
Gatekeepers News reports that Dubai also scrapped the personal liquor licence fees, thereby making the acquisition of the permit free for alcohol consumers in the United Arab Emirates region.
Dubai is one of the most visited cities in the UAE and globally, and this (tourism) has boosted its economy.
This is an attempt by the government to make the city more attractive to foreigners, in the face of competition stiff from its Persian Gulf neighbours like Saudi Arabia and Qatar.
Following this, two alcohol distributors in Dubai — Maritime and Mercantile International (MMI), and African & Eastern — announced the tax cut on Sunday, in a bid to woo customers.
Group Chief Executive Officer, MMI, and Emirates Leisure Retail, Tyrone Reid said the move to end the 30 percent tax on alcohol sales came after the government’s announcement, noting that it became effective immediately.
Reid noted that personal liquor licences will be free-to-obtain for those eligible to legally purchase alcoholic beverages in the city.
He said people wishing to buy an alcohol licence in the city require a valid Emirates ID or passport for tourists, and this can be done at any of MMI’s 21 stores.
Reid said in a statement on Sunday, “Following the announcement by the government of Dubai to remove the 30 percent municipality tax on sales of alcoholic beverages, we are pleased to announce that this will be reflected across all alcoholic beverage products in all our 21 MMI stores in Dubai, effective 1st January.
“Since we began our operations in Dubai more than 100 years ago, the Emirate’s approach has remained dynamic, sensitive, and inclusive for all.
“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”
Nevertheless, while encouraging clients to “take advantage on these huge savings and stock up and apply for a free licence”, MMI stated that the value-added tax (VAT) on its services would still apply.
While Dubai is ending the huge tax on alcoholic products, West African nations like Nigeria began the implementation of a sugar tax of N10 per litre on all non-alcoholic, carbonated, and sweetened beverages in the country in 2022.
