Dubai is reportedly considering reintroducing a 30 per cent alcohol sales tax effective January 1, 2025, a tax that was scrapped by the city’s municipality in late 2022 to attract more tourists.
Restaurants and bars were informed by their contacts at alcohol distribution companies, MMI and African+Eastern, about the reinstating of the alcohol sales tax, according to a Caterer report.
“Please note, Dubai Government have informed us the 30 per cent Municipality tax on alcoholic beverage purchases will be reinstated effective January 2025,” MMI and African+Eastern said in a communiqué.
“This will be effective on all orders invoiced from Wednesday, January 1 2025. Dubai Municipality requests all necessary systems are in place to ensure full compliance with this fee.”
The alcohol sales tax suspension, which was initially planned to last for one year from January 1 to December 31, 2023, resulted in significant savings for Dubai’s restaurants, bars and hotels. The establishments have been paying 30% less in taxes on alcohol purchases throughout 2023 and 2024 compared to previous years.Click here to read more…
