Dubai Implements 30% Tax Reduction On Sales of Alcohol To Boost Tourism

Dubai kicks off the new year with a 30 percent tax reduction on the sales of alcohol as the Middle East country seeks to boost tourism revenues and maintain the number one tourist destination in the Middle East.

Investors King understands that the decision which was made on Sunday also took effect immediately and has been seen as a trying time by the Executive Directors of the alcohol industry.

Dubai, which boasts of a great number of expatriates in a number of nine to one compared to other Middle East countries, has been working on ways to be more flexible with regulations and laws in order to accommodate and attract more tourists to the country.

The change which is expected to run for a year is seen as a key move to compete with other major Middle East countries such as Qatar after the country hosted a successful World Cup in 2022 and attracted a huge number of tourists to the country.

In a video statement posted on Instagram by MMI, one of Dubai’s leading alcohol suppliers “ “With the removal of 30% municipality tax and a free alcohol license, buying your favourite drinks is now easier and cheaper than ever,” it was also revealed that prices of alcohol in their stores reflect the removal of the 30 percent tax reduction.

Investors King also gathered that African+Eastern industry, another major alcohol retailer, disclosed that the prices of their drinks reflect the tax reduction, but prices would remain subject to a 5% value-added tax (VAT).

Tourism is a key pillar of Dubai’s economy, and tourist numbers grew more than 180% in the first half of 2022 over the corresponding 2021 period.

Dubai, which is home to the world’s tallest building and islands shaped like palm trees, will introduce a 9% corporate tax from June on profits exceeding 375,000 dirhams ($102,100).