Dubai will reinstate its 30% municipality tax on alcohol sales starting January 1, 2025, after a two-year suspension. The decision was communicated to restaurants and bars through an email from alcohol retailer African + Eastern, which urged businesses to comply with the updated regulations.
“This will be effective on all orders invoiced from Wednesday, January 1, 2025. Dubai Municipality requests all necessary systems are in place to ensure full compliance with this fee,” the email stated in a Khaleej Times report.
The reimplementation is expected to affect consumer purchasing patterns. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, said the change could benefit hospitality outlets. “We may see guests visiting more often now rather than relying on direct purchases from retail stores, as we will still be offering discounted rates and deals on alcohol,” she said.
The municipality had initially suspended the tax in January 2023 for a year, later extending the waiver through December 2024. Some industry insiders anticipated a smaller tax increase but confirmed the full reinstatement after receiving official communication from suppliers.
Restaurants and bars are now preparing to adjust their pricing and systems to comply with the updated regulations.
