Dubai has reintroduced a 30 percent tax on alcohol, effective from January 1, 2025. Alcohol retailer African + Eastern notified restaurants and bars about the change via email. "Please be aware that the Dubai Government has informed us that the 30 percent municipality tax on alcoholic beverage purchases will be reinstated as of January 2025," the email stated. "This will apply to all orders invoiced from Wednesday, January 1, 2025. Dubai Municipality requires all relevant systems to be updated to ensure full compliance with this fee."
Several restaurateurs confirmed the news, noting that the move could alter purchasing habits. "The reimposition of this tax presents an opportunity for establishments within hotels," said Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room. "In our case, we might see more guests frequenting our venues instead of buying directly from retail stores, as we will continue to offer discounted rates and special deals on alcohol."
In January 2023, Dubai Municipality had announced a temporary removal of the 30 percent tax on alcohol sales for a year, which was later extended until the end of December 2024. "We anticipated a 15 percent increase," said a restaurateur who wished to remain anonymous. "However, it has now been confirmed by alcohol retailers that the tax has been reinstated to the previous 30 percent level."
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