Starting January 2025, Dubai will reintroduce its 30% alcohol sales tax, marking the end of a two-year suspension that began in early 2023. This change will have a direct impact on alcohol pricing for restaurants, bars, and distributors across the emirate. If this news puts a huge damper on your party plans for 2025, keep reading to find out all the important information you need to know.
Also read: Abu Dhabi: Get Same-Day Delivery Alcohol To Your House With New CityDrinks App
Why The Tax Was Suspended In 2023?
Dubai Municipality initially paused the 30% alcohol tax on January 1, 2023, as part of a one-year trial. This pause meant that businesses selling alcohol, such as hotels, bars, and restaurants, could purchase it at significantly reduced rates. While the suspension was expected to last only through 2023, it was quietly extended into 2024 without formal announcements, giving businesses an extra year of reduced costs. During the tax-free period, consumers saw prices at alcohol retailers like MMI and African+Eastern drop by 30%. However, Abu Dhabi still holds this 30% alcohol tax.
Also read: 5 UAE Government Law Updates For 2025 – Strict Traffic Fines, Emiratisation & More
What’s Happening Now?
And today it was just announced that the Dubai Municipality will bring back the tax starting January 1, 2025. A communication from African+Eastern clarified that all orders invoiced from this date will include the 30% tax. Businesses have been advised to update their systems to ensure compliance with this reintroduced fee.
What Does This Mean For You?
For average consumers like you in Dubai, the return of the tax is likely to lead to higher alcohol prices in stores, restaurants, and bars. Retailers may reintroduce the 30% increase in-store, while establishments like bars and hotels will adjust prices based on their overall costs. While the full impact of this change will only become clear in 2025, it’s safe to say that both businesses and customers will feel the pinch of this reinstated fee. Keep your eyes on Gulf Buzz and we’ll make sure to keep you in the loop as this story develops!
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