Dubai has reinstated a 30 per cent tax on alcohol effective January 1, 2025. In an email, alcohol retailer African + Eastern informed restaurants and bars of the change.
“Please note, Dubai Government have informed us the 30 per cent municipality tax on alcoholic beverage purchases will be reinstated effective January 2025,” it wrote in an email.
“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 move was confirmed by several restaurateurs who said this will impact buying behaviours. “A tax to be reimposed serves as an opportunity for outlets operating within hotels,” said Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room. “In our case, we may see guests visiting more often now [rather] than relying on direct purchases from retail stores as we will still be offering discounted rates and deals on alcohol.”
In January 2023, Dubai Municipality announced a plan to remove the 30 per cent tax on alcohol sales in the emirate for a year, which was then extended until the end of December 2024.
A restaurateur who did not want to be named said they were “expecting a 15 per cent” tax. “However, it has now been confirmed by alcohol retailers that the tax has been reinstated to the previous 30 per cent,” they added.
