Dubai scraps 30% alcohol tax to boost tourism

In a bid to boost its tourism, Dubai is scrapping its 30% tax on alcohol. It will also stop charging for personal alcohol licences, which anyone planning to drink must carry.

Dubai has relaxed laws for some time, allowing the sale of alcohol in daylight during Ramadan and authorizing home delivery during the pandemic.

The latest move is understood to be an attempt to make the city more attractive to foreigners in the face of competition from neighbours, the BBC reports.

Dubai’s two alcohol distributors, Maritime and Mercantile International (MMI) and African & Eastern, said they would reflect the tax cut on consumers.

“Since we began operations in Dubai more than 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive to all,” MMI spokesman Tyrone Reid told the AP.

It is unclear whether the move, which took effect Sunday, will be permanent. The Financial Times described the move as a trial run that would last for a year.

Expatriates outnumber nationals by nine to one in Dubai, known as the “party capital” of the Gulf, and residents routinely drive to Umm al-Quwain and other emirates to buy alcohol in bulk.

Dubai has historically managed to attract more tourists and wealthy foreign workers than its neighbors, in part because of its tolerance of a more liberal lifestyle.

But now it faces increasing competition from neighboring countries that are developing in the hospitality and financing sectors.

Non-Muslims in Dubai must be at least 21 years old to drink alcohol and have an alcohol permit, a plastic card issued by the police.

While bars and nightclubs rarely ask to see cards, those who consume alcohol without one can face fines or arrest.

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