Abu Dhabi: In a major decision, the Dubai government on Sunday ended 30 per cent tax on alcohol sales and made liquor licenses free to obtain, Dubai Municipality reported.
The rule for removal of taxes on alcohol sales and free alcohol licenses come into effect on Sunday, January 1, 2023.
Previously, the fee to obtain an alcohol licence in Dubai was 270 Dirham (Rs 6,083) annually and the processing time was about four weeks.
The Dubai Municipality provided this information through its official Twitter account – in response to an inquiry from an online user.
Dubai Municipality tweet read, “Kindly note that the 30 per cent tax collected by Dubai Municipality from alcohol companies has been temporarily suspended for one year starting from January 1, 2023, until December 31, 2023. All companies licensed to sell alcohol in Dubai have been notified of this decision to do the needful.”
The alcohol distributor Maritime and Mercantile International, which is part of the wider Emirates Group, made the announcement in a statement.
Tyrone Reid, Group CEO of Maritime and Mercantile International (MMI) & Emirates Leisure Retail told Associated Press, “Following the announcement by the Government of Dubai to remove the 30 percent municipality tax on sales of alcoholic beverages, we are pleased to announce that this will be reflected across all alcoholic beverage products in all our 21 MMI stores in Dubai, effective 1st January.”
“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE,” Tyrone added.
It is not clear if the move, which took effect on Sunday, will be permanent. The Financial Times described the move as a one-year trial, quoting “industry executives aware of the decision”.
The move is interesting to note as for years the regulations regarding alcohol were relaxed in the sheikhdom, which now sells alcohol during daylight hours even during Ramzan. It also started providing home delivery during COVID-19 lockdowns from the start of the pandemic in 2020.
Where to apply?
Tourists and residents can get a free drinks license by validating the required documents at any MMI or African + Eastern store.
Required documents for alcohol licenses
- For residents – Valid Emirates ID
- For tourists – Valid passport
Age requirement
A person must be at least 21 years old to drink legally in the UAE, and alcohol can only be consumed privately or in licensed public places.
