Dubai ends 30 percent tax on alcohol sales

ROME

Dubai ended its 30 percent tax on alcohol sales in the sheikhdom on Jan. 1 and made its required liquor licenses free to obtain, ending a long-standing source of revenue for its ruling family to apparently further boost its tourism to the emirate.

The sudden New Year’s Day announcement, made by Dubai’s two state-linked alcohol retailers, came apparently from a government decree from its ruling Al Maktoum family.

However, government officials did not immediately acknowledge the decision.

But it follows years of loosening regulations over liquor in the sheikhdom, which now sells alcohol during daylight hours in Ramadan and began providing home delivery during the lockdowns at the start of the coronavirus pandemic.

Alcohol sales have long served as a major barometer of the economy of Dubai, a top travel destination in the UAE, home to the long-haul carrier Emirates.

During the recent World Cup in nearby Qatar, Dubai’s many bars drew commuting football fans.

Alcohol distributor Maritime and Mercantile International, which is part of the wider Emirates Group, made the announcement in a statement.

“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE,” said Tyrone Reid of MMI.

MMI did not respond to a question over whether the decision was permanent. However, an ad put up by MMI urged customers to buy from its stores, saying “you no longer need to drive out to the other emirates.

” Dubai residents long have driven into Umm al-Quwain and other emirates for bulk, tax-free alcohol purchases.

African & Eastern, the second alcohol retailer believed to be at least partially held by the state or affiliated firms, also announced the end of the municipality tax and license fees.