Dubai to reinstate liquor tax from next month

Dubai will reintroduce the 30 percent liquor sales tax starting January 1, 2025.

In January 2023, Dubai had suspended the tax and eliminated the fee for personal liquor licence in order to enhance the city's appeal to expatriates, tourists, and international businesses amidst competition from neighbouring Gulf cities.

However, the recent reinstatement signals a shift back to generating municipal revenue through alcohol sales, a crucial part of Dubai’s fiscal strategy. It is expected to increase retail prices for alcoholic beverages, impacting both consumers and businesses. Bars, restaurants, and liquor stores are likely to pass the added costs onto their customers, making alcohol a more significant expense.