At an alcohol shop in the UAE. EXPAT MEDIA

Dubai is set to reinstate a 30 percent alcohol sales tax effective January 1, 2025, according to major distributors, quoting a Dubai Municipality circular. The tax, initially paused in January 2023 to boost tourism, provided significant cost savings for bars, restaurants, and hotels. However, its suspension did not fully translate to lower prices for consumers, as establishments factored in other operational costs. Major distributors, MMI and African+Eastern, informed clients of the reinstatement. "Dubai Government has directed the reintroduction of the tax on all alcohol purchases starting January 2025. Compliance is expected from all vendors," their communiqué read. While the pause attracted tourists and benefitted the hospitality sector, its reinstatement aligns with Dubai's ongoing adjustments in taxation policies. More details on how the tax will affect pricing in restaurants and retail outlets are yet to emerge. ICA/Expat Media
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