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Dubai removes 30% tax on alcohol license to boost tourism

The new year has begun on a high after the Dubai administration removed the 30 percent alcohol tax and fees to obtain an alcohol license in the city effective January 1 in bid to boost her tourism.

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The changes impact purchase of alcohol, not only for visitors and residents but the hospitality industry as well, since all establishments will now be able to purchase alcohol at the untaxed price.

“As it is all over the news, guests will be fully aware of it, and it will greatly benefit them, with “hopefully” lower prices for them. This will be great for residents and even better for visitors,” said Nicolas Budzynski, Global Operations Director at LPM Restaurants and Bar.

“Orders of high-end beverages will certainly increase as these will become more accessible, and operators should see an increased footfall in bars and licensed restaurant venues,” said Stefano Mihalitsianos, Managing Director at Tashas Group.

“I believe the announcement is a great initiative to make alcohol pricing competitive and aligned with international markets. The end user will benefit from the revision since they have always been charged the 30 percent alcohol government tax, in addition to the operation markup. Prices on alcohol lists will eventually and gradually fall,” said Firas Fawaz, Founder and Managing Partner at The Artisan.

“We will naturally reduce the price of certain spirits,” confirmed Roger Marti, General Manager at Basko.

Feedback received from international travellers over the year revealed that alcohol is expensive in Dubai as compared to other cities, explained Budzynski, in comparison to their other locations globally. “With an overall price reduction, guests will be able to go for an extra glass or bottle, and overall everyone will benefit from this.”

“Prices should be coming down, and the whole industry should support this,” he concluded.

Previously, the fee to obtain an alcohol licence in Dubai was AED270 per year and had a processing time of around four weeks.

MMI confirmed that effective immediately personal liquor licences will be free-to-obtain for those eligible to legally purchase alcoholic beverages in the city.

People wishing to buy an alcohol licence in the city require a valid Emirates ID, or passport for tourists. This can be done at any of MMI’s 21 stores.

African + Eastern is also reported to be cutting fees to acquire an alcohol licence in Dubai.

Required documents for alcohol licenses

  • For residents – Valid Emirates ID
  • For tourists – Valid passport

Where to apply

Tourists and residents can obtain a free alcohol license by validating the required documents at any MMI or African + Eastern store.

Age and consumption

Legally in the UAE, for non-Muslims the alcohol consumption age is 21. Alcohol can only be consumed in licensed establishments or in private setting.

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