Khaleej Times, 6 December 2024: Dubai will reinstate a 30% tax on alcohol sales starting 1 January 2025.

The Dubai Government has mandated the reinstatement of the 30% municipality tax on alcoholic beverage purchases, effective from January 2025.

All orders invoiced from 1 January 2025, will be subject to this tax, and Dubai Municipality has requested that all necessary systems be in place to ensure compliance.

Several restaurateurs have confirmed the move, noting its potential impact on consumer buying behaviours.

One executive director from a hotel and permit room mentioned that the reimposed tax could present an opportunity for outlets within hotels, as they may attract more guests who prefer discounted rates and deals on alcohol rather than purchasing directly from retail stores.

Previously, in January 2023, Dubai Municipality had announced the removal of the 30% tax on alcohol sales for a year, a measure that was extended until the end of December 2024.

A restaurateur, who has wished to remain anonymous, expressed surprise at the reinstatement of the full 30% tax, as they had anticipated a 15% rate.

However, alcohol retailers have now confirmed the return to the previous 30% tax.

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