Dubai brought in the New Year by scrapping the 30% sales tax on alcohol
to woo tourists and skyrocket its tourism business. This tax suspension will last for a year on a trial period. Removing the license fee is believed to bring relief for the customers and significant savings for the shops.One of Dubai’s biggest alcohol retailers and distributors, MMI, said in a statement, “With the removal of 30% municipality tax and a free alcohol license, buying your favorite drinks is now easier and cheaper than ever.”
Another beverage retailer, African + Eastern, also shook hands on this initiative. However, the retailer declared that the prices would remain subject to a 5% VAT. Its chief executive said, “The prices are here to stay and are on a long-term trial. This announcement will be especially transformative for tourists and residents.”
The cost of alcohol in Dubai is notoriously high, as you have to spend $15 for a pint of beer and over $20 for a glass of wine. Cocktails range in price from $ 12 to $35. This money-saving measure is likely to stimulate more tourism and business.
The move is made to cut through the regional competition and emerge as a global tourist hotspot. In a nutshell, Dubai has relaxed its booze laws to get the upper hand over the Middle East countries — regarding the influx of tourists, trade businesses, and ex-pat entrants from the West.
Its potential neighbor, Saudi Arabia, creates a giant employment hub by offering lucrative salaries and bringing in new industries. It is working on liberalizing its regulations and polishing its hospitality services. It has even invested billions in the ambitious tourism project Red Sea Global, which has a sustainable development vision. Qatar, on the other hand, has recently doubled its tourism fame by hosting the FIFA World Cup. However, these places have either banned or restricted the purchase of alcohol.
Dubai has more than 85% foreign population, and alcohol is widely available in the emirate, unlike other Gulf cities, making it a preferred destination for living and holidaying. This tax-reduction step has left both tourists and locals enthralled. The city is sending out the signal of its liberal viewpoint to global tourists.
After the pandemic, the city has revived its economy, luring global tourists and new residents with its hardly-believable attractions and relaxation of laws. Later this year, the UAE is eyeing a 9% corporate income tax.
