Dubai drops 30% tax on alcohol sales

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Dubai has dropped the 30 per cent municipality tax on the sale of alcohol in the emirate for a one-year trial period.

Starting January 1, 2023, all establishments purchasing alcohol in the emirate pay 30 per cent less compared to previous years.

In addition, personal liquor licences are now free-to-obtain for those eligible to legally purchase alcoholic beverages in Dubai. Previously, these would cost up to AED 270 per year.

In a statement, Maritime & Mercantile International (MMI), confirmed that it had removed the 30 percent municipality tax on all alcoholic beverages across its 21 stores in Dubai as well as the personal liquor licence fee.

It said these updates are in line with the directives from the Government of Dubai relating to the purchase and consumption of alcoholic beverages in the city.

For those applying for a licence, a valid Emirates ID for residents or passport for tourists, is still required to apply. 

Tyrone Reid, Group CEO of Maritime and Mercantile International (MMI) & Emirates Leisure Retail said, “Since we began our operations in Dubai over 100 years ago, the Emirate’s approach has remained dynamic, sensitive and inclusive for all. These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”

Meanwhile a circular sent by African & Eastern to its customers also confirms the suspension of the 30 per cent municipality levy, saying the “landed cost” for beverages will be lower as a result.

It called the move a “positive change,” which will make Dubai a more reputable and affordable tourism destination.

A person must be at least 21 to drink legally in the UAE, and alcohol can only be consumed privately or in licenced public places.