Dubai is set to bring back a 30% alcohol tax starting January 1, 2025. Alcohol retailer African + Eastern notified restaurants and bars about the change via email.
“Please note, Dubai Government has informed us that the 30% municipality tax on alcoholic beverage purchases will be reinstated effective January 2025,” the email stated.
The new tax will apply to all orders invoiced starting Wednesday, January 1, 2025. Dubai Municipality has asked businesses to ensure their systems comply fully with the updated regulation.
Impact on the Hospitality Sector
Several restaurateurs have confirmed the tax reinstatement and believe it could influence purchasing habits. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, said:
“A tax reimposition is an opportunity for outlets within hotels. We may see more guests choosing to visit us rather than purchasing directly from retail stores since we will continue offering discounts and deals on alcohol.”
Dubai previously removed the 30% alcohol tax in January 2023 as part of a year-long initiative, which was later extended until December 2024. This reinstatement marks the return to the earlier tax structure.
Another restaurateur, who chose to remain anonymous, mentioned they were initially expecting a smaller tax of 15%. However, the 30% rate has now been confirmed by alcohol retailers.
