Dubai will reinstate the 30% tax on alcohol sales beginning January 1, 2025, ending a two-year suspension of the fee. The announcement was made through an email sent by alcohol retailer African + Eastern to restaurants and bars, confirming the return of the tax.
“Dubai Government have informed us the 30 per cent municipality tax on alcoholic beverage purchases will be reinstated effective January 2025,” the email stated. Businesses were advised to ensure compliance with the updated tax regulation.
Restaurateurs have confirmed the move, noting it may influence consumer behavior. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, suggested the tax could encourage guests to purchase alcohol at discounted rates from hotel outlets rather than retail stores. “We expect to see more frequent visits from guests looking for deals,” Bhasin said.
The municipality initially suspended the alcohol tax in January 2023 as part of a one-year trial, later extending the suspension through December 2024. Some industry players had anticipated a reduced tax rate, but confirmation of the 30% fee has reset expectations.
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