Tuesday, January 31, 2023
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HomeNewsBusinessTo increase tourism Dubai scraps 30% tax on alcohol sales

To increase tourism Dubai scraps 30% tax on alcohol sales

On Sunday, Dubai eliminated its 30% tax on alcohol sales in the sheikhdom and made the needed liquor licences freely available, removing a long-standing source of income for the ruling family and ostensibly helping to increase tourism.

However, it comes after years of easing booze laws in the sheikhdom, which now allows sales of alcoholic beverages during Ramadan’s daytime hours and started offering home delivery during lockdowns at the beginning of the coronavirus pandemic.

The abrupt notification on New Year’s Day from Dubai’s two state-linked alcohol merchants appears to have been a result of a directive from the Al Maktoum family, the country’s governing dynasty. However, the decision was not immediately acknowledged by government representatives, and they did not react to inquiries from The Associated Press.

Alcohol sales have long been a key economic indicator for Dubai, a popular tourist destination in the United Arab Emirates and the base of the long-haul airline Emirates. Soccer fans travelled to Dubai’s numerous pubs during the recent World Cup in the neighbouring country of Qatar.

The announcement was announced in a statement by the global Emirates Group organisation that distributes alcohol, Maritime and Mercantile International.

But at a bar, a pint of beer easily can cost more than $10, and other drinks can be significantly more expensive. It wasn’t immediately obvious whether this would result in a price decrease for venues that serve alcohol or if it would solely have an impact on people who purchase it from stores.

Tyrone Reid of MMI said, “Since we started operating in Dubai more than a century ago, the emirate’s approach has remained creative, sensitive, and inclusive for all. “These recently revised restrictions are essential to maintaining the safe and responsible sale and consumption of alcoholic beverages in Dubai and the United Arab Emirates.”

A query regarding whether the choice was a long-term one received no response from MMI. But an MMI advertisement pushed customers to shop there, claiming that “you no longer need to drive out to the other emirates.” For years, people of Dubai have travelled to Umm al-Quwain and other emirates to buy large quantities of alcohol tax-free.

The removal of the municipality tax and licence costs was also announced by African & Eastern, the second alcohol retailer thought to be at least partially owned by the state or connected businesses. Non-Muslims in Dubai are need to be 21 or older in order to consume alcohol. The Dubai police issues plastic cards to drinkers that allow them to buy, transport, and consume beer, wine, and liquor. Even though the sheikhdom’s extensive network of pubs, nightclubs, and lounges hardly ever requests to see the permission, failure to do so might result in penalties and incarceration.

Nevertheless, liberal Compared to other countries in the area, Dubai stands out. Alcohol is forbidden in Sharjah, an emirate that shares a border with Dubai to the north, as well as in the adjacent countries of Iran, Kuwait, and Saudi Arabia. The UAE’s oil-rich metropolis Abu Dhabi discontinued its system of alcohol licences in September 2020. The revelation on Sunday also coincided with the UAE’s plans to impose a 9% corporate tax in June on top of other levies and fees that it collects in order to avoid paying income taxes on individuals.

News Summary:

  • To increase tourism Dubai scraps 30% tax on alcohol sales
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