UAE abolishes tax on sale of alcohol in Dubai
2023.01.02 04:02
UAE abolishes tax on sale of alcohol in Dubai
Budrigannews.com – Two major retailers announced on social media that Dubai has removed a license fee previously required to purchase alcohol in the commercial and tourist hub and suspended a 30% alcohol tax.
In comparison to other Gulf cities, the move is anticipated to further increase Dubai’s appeal to tourists and expatriate residents drawn by its more liberal lifestyle.
According to reports in domestic media, the changes went into effect on Sunday and will be trialled for a year.
“With the removal of a 30% municipality tax and a free alcohol license, buying your favorite drinks is now easier and cheaper than ever,” stated MMI, one of Dubai’s two major alcoholic beverage distributors, on its Instagram account.
It added that the tax has been removed, which is reflected in the prices of its stores across the emirate.
African+Eastern, a different retailer, confirmed that the tax had been removed, but that prices would still be subject to a 5% value added tax (VAT).
A request for clarification was made, but the Dubai Media Office did not immediately respond.
Dubai’s economy has quickly recovered from the COVID-19 pandemic, with GDP increasing by 4.6% over the previous year for the first nine months of 2022.
Tourism is an important part of the economy, and the number of tourists increased by more than 180% in the first half of 2022 compared to the same period in 2021.
A few Inlet states have presented Tank as they progressively go to tax collection to support non-oil income.
The United Arab Emirates does not tax income, but beginning in June, it will impose a 9% corporate tax on profits exceeding 375,000 dirhams (102,100 dollars).
However, Dubai, which is home to the tallest building in the world and palm-shaped islands, faces growing regional competition.
Saudi Arabia, for instance, hosts major cultural and sporting events while simultaneously investing billions of dollars to enhance its tourism appeal through initiatives like the Red Sea Project.
In the emirate of Ras Al Khaimah, where Islamic laws have long prohibited gambling, the first Gulf casino is expected to open in 2026 at a resort built and managed by Wynn Resorts (NASDAQ:).
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