Dubai has reversed its decision to impose a new customs duty on goods purchased internationally with a value of over AED 300.
In an email notification, Dubai Customs stated that the former limit of AED 1,000 has been restored, effective from 1 March 2023.
In January, Dubai imposed a 5% customs duty on goods worth over AED 300. Hence, importers had to pay a 5% duty as well as a 5% value-added tax (VAT).
Importers of tobacco, tobacco products, e-cigarettes, and vaping liquids, were required to pay 200% duty, along with a “sin tax,” that applies to sugary beverages.
The restoration of the older AED 1,000 limit will be welcomed by Dubai residents who frequently import goods. The move will boost the emirate’s retail sector.
However, it remains to be seen whether the decision to suspend the duty is a temporary measure or a permanent one.
