World

Dubai drops 30 percent tax on alcohol to woo tourists, expats

kem haris 2 years ago 2 min read

Dubai has suspended a 30 percentage tax on alcohol and dropped a licence charge requirement formerly wanted to shop for alcohol withinside the business and tourism hub, most important shops stated on social media.

The circulate is predicted to in addition enhance the attraction of Dubai, part of the United Arab Emirates, to vacationers and expatriate citizens drawn via way of means of its extra liberal lifestyle, in comparison with different Gulf cities.

The modifications took impact on Sunday and could run for a one-12 months trial period, home media have stated.

“With the elimination of 30% municipality tax and a unfastened alcohol licence, shopping for your favorite beverages is now less complicated and inexpensive than ever,” MMI, one in every of most important purveyors of alcohol in Dubai, stated on its Instagram account on Sunday.

Prices in its shops throughout the emirate now mirror the elimination of the tax, it brought.

Another retailer, African+Eastern, showed on Sunday the tax not applied, however charges might continue to be problem to a five percentage value-brought tax (VAT).

The Dubai Media Office did now no longer right away reply to a request for comment.

Dubai’s financial system has rebounded unexpectedly from the COVID-19 pandemic, with gross home product (GDP) developing 4.6 percentage at the 12 months for the primary 9 months of 2022.

Tourism is a key pillar of the financial system, and visitor numbers grew extra than a hundred and eighty percentage withinside the first 1/2 of of 2022 over the corresponding 2021 period.

Several Gulf states have delivered VAT as they an increasing number of flip to taxation to reinforce non-oil revenue.

While the UAE does now no longer impose an profits tax, it’ll introduce a nine percentage company tax from June on earnings exceeding 375,000 dirhams ($102,100).

But Dubai, domestic to the world’s tallest constructing and islands formed like palm trees, faces developing local competition.

Saudi Arabia, for example, is making an investment billions to burnish its tourism attraction with efforts which include the Red Sea Project, at the same time as gambling host to most important cultural and carrying events.

Qatar is likewise hoping for elevated tourism following the 2022 World Cup.

The first on line casino withinside the Gulf, wherein Islamic policies have lengthy saved playing off limits, is predicted to open withinside the UAE emirate of Ras al-Khaimah in 2026, at a lodge being constructed and operated via way of means of Wynn Resorts.