Dubai reinstates 30% sales tax on alcohol

The latest directive from the Dubai Government removes the 2-year suspension of the 30% sales tax on alcohol. The tax was suspended on 1 January 2023 and will only be in force until 31 December 2024. What is a 30% sales tax on alcohol anyway? It is a tax that all businesses selling alcohol, such as alcohol shops, as well as bars and restaurants, must pay. The tax is paid by businesses when they purchase alcoholic beverages at the wholesale price. What does the reinstatement of the alcohol tax mean for tourists?

Alcohol tax returns in Dubai, but prices won't rise much

According to market experts and sources from The National News, the price of alcohol (from beer to whisky to drinks at the bar) will increase by an average of AED 5. Alcohol price increases of 30 per cent are not expected. Businesses in Dubai pay tax on wholesale prices, so their action and fairness does not allow them to pass on the same amount of tax to the customer who already buys alcohol at retail price. As for the official prices - one has to wait until the beginning of the New Year, but tourists should not feel the increases too much.

Source: thenationalnews.com