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UPDATE: Dubai Suspends 30 Percent Tax On Alcohol Sales To Attract Tourists

In an effort to increase tourism in the emirate, Dubai’s government has abolished the 30% alcohol tax.

Additionally, Dubai will stop charging for personal liquor licenses, making it free to obtain one for drinkers throughout the United Arab Emirates.

The suspension of the alcohol tax is intended to help Dubai’s economy by increasing tourism, which is one of the most popular tourist destinations in the UAE and the world, according to Arabian News.

The most recent change is a strategy used by the government to compete with Saudi Arabia and Qatar, two of the city’s Persian Gulf neighbors, and make the city more appealing to tourists.

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Following the development, Maritime and Mercantile International (MMI) and African & Eastern, two alcohol distributors in Dubai, announced the tax reduction on Sunday in an effort to attract customers.

The decision to eliminate the 30 percent tax on alcohol sales, according to Tyrone Reid, group chief executive officer of MMI and Emirates Leisure Retail, came following the government’s statement and took effect right away.

Reid noted that anyone who are able to lawfully purchase alcoholic beverages in the city will be able to obtain personal liquor licenses without paying a fee.

A valid Emirates ID, or a passport for foreigners, is required to get an alcohol license in the city, according to him. This may be done at any of MMI’s 21 stores.

“Following the announcement by the government of Dubai to remove the 30 percent municipality tax on sales of alcoholic beverages, we are pleased to announce that this will be reflected across all alcoholic beverage products in all our 21 MMI stores in Dubai, effective 1st January,” Reid said in a statement on Sunday.

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“Since we began our operations in Dubai more than 100 years ago, the Emirate’s approach has remained dynamic, sensitive, and inclusive for all.


“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”

However, while encouraging clients to “take advantage on these huge savings and stock up and apply for a free licence”, MMI said the value added tax (VAT) on its services would still apply.



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