Dubai eliminates 30% alcohol tax and license fee to boost tourism

• Dubai has eliminated its 30% alcohol tax.
• The change is not yet known to be permanent.
• Drinking without permit can result in penalties or even arrest.

Dubai has eliminated its 30% alcohol tax in what appears to be an effort to increase tourism.

Additionally, it will discontinue charging for personal alcohol licences, which are required for anyone planning to consume alcohol.

For some time now, Dubai has loosened its restrictions, allowing alcohol sales during Ramadan in the open air and enabling home delivery during the period.

In response to competition from nearby cities, it is believed that this most recent action is an effort to make the city more appealing to foreigners.

Maritime and Mercantile International (MMI) and African & Eastern, the two companies that distribute alcohol in Dubai, said they will pass along the tax reduction to customers.

According to MMI spokesman Tyrone Reid, “the emirate’s approach has remained dynamic, sensitive, and inclusive for all since we began our activities in Dubai more than 100 years ago.

“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.”

The change, which became effective on Sunday, is not yet known to be permanent. According to “industry executives informed of the decision,” the move would be a one-year trial, according to The Financial Times.

In Dubai, the “party capital” of the Gulf, foreigners outnumber locals nine to one, and locals frequently travel to Umm al-Quwain and other emirates to purchase alcohol in large quantities.

Because it tolerates a more free lifestyle, Dubai has historically been able to draw more tourists and rich foreign workers than its neighbours.

But as competitors expand their hospitality and finance areas, it is now up against more competition.

In Dubai, non-Muslims must be at least 21 years old and possess an alcohol licence, which is a plastic card issued by the police.

Even though bars and clubs rarely request to see the cards, those who drink without them risk penalties or even arrest.

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