Do you have any plans to visit Dubai in the near future? You'll be relieved to know that the emirate has suspended its 30% municipality tax on alcoholic beverages for a year. This move is expected to increase Dubai's appeal as a relatively liberal tourist hub in the region, and it means that purchasing your favorite drinks will be easier and less expensive than ever.
Along with the suspension of the municipality tax, Dubai is also abolishing the annual AED 270 (€70) licence fee that was previously required to purchase alcohol for home consumption. This means that tourists can now present their original passport to apply for a free 30-day licence at liquor stores in Dubai. Personal licenses are not required to drink in the emirate's licensed restaurants, hotels, and bars.
While liquor stores such as MMI are passing on tax savings to customers, it is unlikely that the tax break will translate into a 30% discount at Dubai bars. Other factors, such as an increase in corporate tax and the need to shift existing stock, will have an impact on prices, with some bars predicting that drinks will be cheaper by an average of 4 AED (€1).
Dubai is a major tourist destination, and the economy has quickly recovered from the COVID-19 pandemic. Tourist numbers increased by more than 180% in the first half of 2022 compared to the same period in 2021. However, Dubai is facing increasing regional competition from countries such as Saudi Arabia, which is investing billions in projects such as the Red Sea Project to boost its tourism appeal.
If you're thinking about visiting Dubai, the suspension of the municipality tax on alcohol sales and the elimination of the annual license fee is fantastic news. It means you'll be able to enjoy your favorite drinks at a lower cost, adding to the enjoyment of your vacation. If you intend to buy alcohol for personal consumption, don't forget to apply for your free 30-day licence at a liquor store in Dubai. Remember that personal licenses are not required to drink in the emirate's licensed restaurants, hotels, and bars. Enjoy your trip to Dubai and take advantage of the alcohol tax breaks!