Party on: Dubai scraps alcohol tax to spice up tourism

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Party on: Dubai scraps alcohol tax to spice up tourism


Sky-high booze costs typically immediate Dubai residents to journey to neighboring emirates, the place alcoholic drinks price much less

Any resident of Dubai, who needs to eat, transport or inventory alcohol is legally required to own a liquor license. The liquor licenses might solely be issued to individuals aged 21 or older, and price 270 dirham ($73) a 12 months, every.

There’s additionally a 30% tax on alcoholic drinks collected by Dubai authorities.

In Dubai, referred to as the Gulf’s “party capital,” the worth of 1 bottle of beer typically tops $10, whereas a bottle of wine might simply price over $100. The sky-high booze costs typically immediate Dubai residents to journey to neighboring emirates, the place alcoholic drinks price much less.

According to an announcement from two main UAE retailers, as of this Sunday, Dubai authorities has eradicated a 30% tax on alcohol and 270-dirham price for liquor licenses, making them free to acquire.

In a collection of posts on Instagram, Maritime and Mercantile International (MMI), one of many largest alcohol shops in Dubai, praised the transfer as “BIG BIG NEWS,” celebrating that folks “no longer need to make trips across the country to stock up on favorite drinks.”

“With the removal of [the] 30% municipality tax and FREE alcohol license, buying your favorite drinks is now easier and cheaper than ever!” MMI declared.

Another main emirati booze vendor, African + Eastern, confirmed the brand new. However, a 5% VAT fee nonetheless applies to alcoholic beverage purchases, the retailer added.

New laws got here into pressure yesterday, however it’s not clear whether or not they’re right here to remain on a everlasting foundation. According to native media reviews, new adjustments in alcohol commerce legal guidelines are of their trial part and can stay in impact for a 12 months for now.

The determination to chop taxes on alcoholic drinks comes after Dubai permitted a brand new tourism technique in November in a bid to spice up its competitiveness and entice 100 billion dirham ($27 billion) in extra funding by 2031.

According to a chief economist of Abu Dhabi Commercial Bank, Dubai authorities’s determination “should further support the tourism and hospitality sectors.”

The transfer will “also be welcomed by many residents, who are predominantly expatriates,” financial institution official added.

Nearly 90% of the inhabitants of the United Arab Emirates (UAE), the place Dubai is the most important metropolis, are expatriates.

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