Dubai Cuts Its 30% Alcohol Tax to Boost Tourism

    The timing of the sudden change has been met with disapproval from some residents who had lately paid for his or her yearly license in full.

    Dubai has introduced that it’s scrapping its 30% tax on alcohol gross sales for the remainder of 2023. This is the municipality’s newest step in the direction of strengthening the tourism sector and attracting international residents by coverage adjustments.

    “Dubai Municipality has temporarily stopped collecting the 30% fee from alcoholic beverage companies for a period of one year from the beginning of 01/01/2023 to the end of 12/31/2023. The companies authorized to sell in the Emirate of Dubai have been notified of this decision,” the Dubai Municipality tweeted.

    Alcohol is notoriously costly in Dubai. A pint of beer might value about $15 and a glass of wine, $20 or extra. The municipality’s determination is geared toward boosting enterprise amongst vacationers and locals because it aspires to become the “happiest place on Earth.”

    “The decision to suspend alcohol taxes follows moves to change its weekend to Saturday-Sunday and the widening of access to long-term residency visas. As a collective, these initiatives should boost tourism and encourage more expatriates to think of Dubai as their home,” Karim Jetha, chief funding officer at Dubai-based asset administration agency Longdean Capital stated.

    The information was first revealed by native alcohol distributors with Maritime and Mercantile International (MMI) writing Sunday on its Facebook web page: “You can now: save 30% municipality tax on alcoholic beverages. We have reflected this across all our pricing!” It added that the UAE’s 5% gross sales tax (VAT) nonetheless applies, nevertheless.

    Personal liquor licenses, a requirement when shopping for alcohol in native outlets, beforehand value 270 dirhams ($73.50) however at the moment are free. Licenses weren’t required when shopping for alcohol in bars, nevertheless. Before the beginning of the 12 months, the licenses had to be renewed yearly and took about 4 weeks to be processed. It remains to be unclear if this can stay the case for the free licenses. As it stands, Dubai is the one emirate within the United Arab Emirates (UAE) that mandates using liquor licenses for in-shop alcohol purchases. In Abu Dhabi and 4 different emirates, no license is required whereas the sale of alcohol is prohibited within the extra conservative emirate of Sharjah.

    The timing of the sudden change has been met with disapproval from some residents who had lately paid for his or her yearly license in full. Generally, nevertheless, the information was acquired favorably. It comes at a time when neighboring Saudi Arabia is working exhausting at taking the UAE’s spot because the area’s tourism and business capital.

    Market News, News

    Mercy Tukiya Mutanya

    Mercy Mutanya is a Tech fanatic, Digital Marketer, Writer and IT Business Management Student.
    She enjoys studying, writing, doing crosswords and binge-watching her favorite TV collection.

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