Dubai Eliminates 30% Alcohol Tax, Liquor License Fee

According to Trend Reports, quoting Al Arabiya, Dubai destroyed its 30% tax on alcohol sales on Sunday (1 January) and made alcohol licences free to get in an apparent effort to draw tourism to the emirate.

On New Year’s Day, the shocking news by Dubai’s two state-affiliated alcohol stores was probable the result of an Al Maktoum family decision.

Dubai Abolishes 30% Alcohol Tax and Alcohol License Fee

MENAFN stated that government officials did not immediately confirm the decision and did not answer to queries from The Associated Press.

Following years of relaxing alcohol limitations, the sheikhdom now sells alcohol during daylight hours throughout Ramadan and began offering home delivery during lockdowns when the coronavirus the outbreak hit.

Dubai, an increasingly popular vacation spot in the UAE and the headquarters of the long-distance airline Emirates, has long been a key economic gauge based on alcohol sales.

During the recent World Cup in neighbouring Qatar, football fans travelling from Qatar visited several bars in Dubai.

A pint of beer in a bar, on the other hand, may easily cost more than $10, and other beverages are far more expensive. It was unclear if this would result in price decreases at alcohol-serving venues or have an effect on consumers buying alcohol from shops.

The announcement was made by Maritime & Mercantile International (MMI), a division of the broader Emirates Group.

According to MMI’s Tyrone Reid, from the company’s starting points in Dubai more than a century ago, the emirate’s approach has remained imaginative, sensitive, and inclusive.

“These recently amended limitations are critical for ensuring the safe and responsible purchase and use of drinks containing alcohol in Dubai and the UAE.”

MMI did not respond to a query about the decision’s long-term viability. MMI, on the other hand, encouraged people to shop in its shops, stating that “you no longer need to drive to other emirates.”

Dubai residents have long travelled to Umm al-Quwain and other emirates to buy tax-free wine in the amount.

African & Eastern, the second alcohol shop suspected of being at least partially owned by the state or businesses linked with it, also announced the elimination of municipal taxes and licence fees.

Non-Muslims must be at least 21 years old to buy alcohol in Dubai, according to the local laws. The Dubai police split plastic cards to consumers that allow them to purchase, transportation, and consume beer, wine, and spirits. Otherwise, they face fines and jail, ignoring the fact that the sheikhdom’s vast network of pubs, nightclubs, and lounges virtually never demands to see the permission.

Nonetheless, Dubai is unique from the rest of the vicinity. Alcohol is illegal in Sharjah, an emirate abutting Dubai on the north, and also in Iran, Kuwait, and Saudi Arabia.

The capital of the oil-rich United Arab Emirates, Abu Dhabi, will phase down its alcohol licencing system in September 2020.

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