Dubai has scrapped the 30% sales tax on alcohol and dropped a licence fee previously needed to buy alcohol in the commercial and tourism hub, according to two major alcohol retailers.
“With the removal of 30% municipality tax and a free alcohol licence, buying your favourite drinks is now easier and cheaper than ever,” MMI, one of two major purveyors of alcohol in Dubai, said on its Instagram account.
Another retailer, African+Eastern, confirmed the tax no longer applied, but prices would remain subject to a 5% value added tax (VAT).
The move is expected to further boost the appeal of Dubai to tourists and expatriate residents drawn by its more liberal lifestyle, compared to other Gulf cities.
Commenting on the news that Dubai is suspending a 30% alcohol sales tax in a move to boost tourism, Antonio Fellino, managing director, Travel Republic, said:
“This is great news for travellers who are looking to visit to Dubai, as holiday prices will become cheaper, as costs for hotels and accommodation providers will fall.
“Prices on all-inclusive holidays, which are generally proving really popular this year and particularly to destinations such as Dubai, will also become competitive and therefore more affordable for all.
“It’s a very welcome move by Dubai and I am sure that the UK Market will react favourably as consumers are looking for exceptional value for their holidays this year, and to be able to purchase alcohol and enjoy a drink more cheaply will be a bonus.
“Dubai was an extremely popular holiday destination in 2022 and our second most booked destination of the year, with bookings up +62% versus 2021 and +45% vs 2019. With year-round sunshine and prices as low as £24per person for 7 nights it offers such great value.”
