As of January 1, 2025, a 30% alcohol tax will resume in Dubai. This information was emailed to bars and restaurants by the alcohol retail chain African + Eastern. In the email, it is said, “The 30% municipality tax on alcoholic beverage purchases is going to be reinstated starting January 2025. This applies to all orders invoiced from Wednesday, January 1, 2025. Dubai Municipality has stated that all necessary systems should be updated to comply with counts regarding fee.”
Several restaurateurs affirmed the bill alongside what it could mean for customers’ consumption habits. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, added, “This reintroduction of tax would benefit outlets like ours that are based at the hotel. The guests might pay more heed to dining or drinking with us because we are having an ongoing discount and promotion rather than the retail stores”.
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The tax suspension was put in place also in January of last year, in compliance with an initiative by Dubai Municipality. This was initially meant to last one year and has since been extended to December 2024.
One unnamed restaurant owner expressed surprise as they did not see this coming: “We were expecting a 15% tax, but it has now been confirmed by alcohol retailers that the previous 30% rate will go back.”