From January 1, 2025, Dubai will reintroduce a 30% municipality tax on alcohol sales across the emirate. This tax, initially suspended at the end of 2022 as part of a trial period for 2023, was extended through 2024 before the recent announcement of its reinstatement.
What the Suspension Meant for Consumers and Businesses :
When the tax was first paused, restaurants and bars benefitted from lower procurement costs, while retailers like MMI and African+Eastern reduced their prices, allowing consumers to enjoy significant savings. However, the impact on restaurant and bar pricing was less straightforward, as some establishments passed on partial savings rather than the full 30% reduction.
With the return of the tax, prices at both retail outlets and hospitality venues are expected to increase, affecting consumers directly.
How to Apply for an Alcohol License in Dubai :
Though the UAE removed the criminal offense of consuming alcohol without a license on November 7, 2020, an alcohol license is still required for purchasing and possessing alcohol in Dubai.
The process to obtain a license is straightforward and free. Residents can apply using their Emirates ID, while tourists can use their passport. Applications can be made in-store at African+Eastern or MMI outlets or completed instantly online with staff assistance.
Prepare for changes in pricing as the reinstated tax takes effect, and ensure you have the proper license to make your purchases in compliance with Dubai’s regulations.