Advertisement
Advertisement
Advertisement
Dubai drops 30 percent tax on alcohol to woo tourists

Dubai drops 30 percent tax on alcohol to woo tourists

Dubai drops 30 percent tax on alcohol to woo tourists

Dubai drops 30 percent tax on alcohol to woo tourists

Advertisement
  • Dubai delayed a 30% alcohol tax and eliminated a license charge.
  • The modifications went into effect on Sunday and will be tested for a year.
  • The move should help Dubai attract tourists and expats with its liberal lifestyle.
Advertisement

Two significant merchants announced on social media that Dubai has postponed a 30 percent tax on alcohol and removed a license fee requirement that was previously required to purchase alcohol in the business and tourist center.

The action is anticipated to increase Dubai’s allure to tourists and expatriate residents drawn to its more liberal lifestyle when compared to other Gulf cities. Dubai is a part of the United Arab Emirates.

The modifications went into effect on Sunday and will be tested for a year, according to domestic media.

“With the removal of 30% municipality tax and a free alcohol license, buying your favorite drinks is now easier and cheaper than ever,” MMI, one of two major purveyors of alcohol in Dubai, said on its Instagram account on Sunday.

Prices in its stores around the emirate now take the tax’s elimination into account, it noted.

African+Eastern, a different store, said on Sunday that although the tax was no longer in effect, prices will still be subject to a 5 percent value-added tax (VAT).

Advertisement

An inquiry for comment was not immediately answered by the Dubai Media Office.

After the COVID-19 epidemic, Dubai’s economy quickly recovered, with the first nine months of 2022 seeing a 4.6 percent annual growth in the GDP.

A major economic pillar, tourism saw a more than 180 percent increase in visitors during the first half of 2022 compared to the same period in 2021.

As the Gulf governments increasingly rely on taxes to increase non-oil revenue, many of them have implemented VAT.

The UAE does not have an income tax, but starting in June, profits over 375,000 dirhams ($102,100) will be subject to a 9 percent corporate tax.

Dubai, though, which has the tallest structure in the world and islands that resemble palm trees, is facing increasing regional competition.

Advertisement

For instance, Saudi Arabia is spending billions to improve its appeal to tourists through initiatives like the Red Sea Project and by hosting important cultural and sporting events.

In addition, Qatar anticipates a boost in tourists after the 2022 World Cup.

In the UAE emirate of Ras al-Khaimah, where Islamic law has traditionally prohibited gambling, the region’s first casino is anticipated to open in 2026. Wynn Resorts is developing and managing the resort.

Also Read

Alcoholics given ketamine to stop drinking
Alcoholics given ketamine to stop drinking

Alcoholics will receive ketamine-assisted therapy. NIHR-funded trial will be conducted at seven...

Advertisement
Advertisement
Read More News On

Catch all the UAE News, World News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story