Dubai to Reinstate 30% Alcohol Sales Tax Starting January 2025

Dubai has decided to bring back the 30% tax on alcohol sales starting January 1, 2025. This change was announced by African + Eastern, a big alcohol seller in the city, through an email sent to restaurants and bars.

The email said, “The Dubai Government has told us that the 30% tax on alcohol purchases will return from January 2025. This tax will apply to all orders from Wednesday, January 1, 2025. Dubai Municipality has asked all businesses to make sure their systems are ready to follow this rule.”

Restaurant owners and bar managers have confirmed this news and believe it will change how people buy alcohol in the city. Eti Bhasin, who is the Executive Director of Majestic Retreat City Hotel and Permit Room, said this tax might be a good thing for hotels and bars. She explained, “With the tax coming back, more people might visit hotels and bars instead of buying alcohol from stores. We will still offer discounts and deals, so customers might prefer to come to us.”

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The 30% tax was removed in January 2023 to help the tourism and hospitality businesses in Dubai. This tax-free period was supposed to last for one year but was later extended until the end of December 2024. Now, it will officially end, and the tax will return in January 2025.

Another restaurant owner, who did not want to be named, said they thought the tax would come back but at a lower rate, like 15%. “Now it’s clear that the full 30% tax will return,” they said.

Businesses are now getting ready for this change, as it may affect how people choose to buy alcohol in Dubai. Some experts believe customers may prefer to go to bars and hotels where they can still find deals instead of buying directly from stores. The return of the tax could change the way alcohol is sold and enjoyed in the city starting next year.