Dubai will reintroduce a 30% tax on alcohol starting January 1, 2025. Alcohol retailer African + Eastern notified bars and restaurants about the decision through an email.
The email stated, “The Dubai Government has informed us that the 30% municipality tax on alcoholic beverage purchases will be reinstated starting January 2025. This applies to all orders invoiced from Wednesday, January 1, 2025. Dubai Municipality requires all necessary systems to be updated to ensure compliance with this fee.”
Several restaurateurs confirmed the move, noting its potential impact on consumer habits. Eti Bhasin, Executive Director of Majestic Retreat City Hotel and Permit Room, remarked, “This tax reintroduction could benefit hotel-based outlets like ours. Guests may prefer dining and drinking with us due to ongoing discounts and promotions rather than purchasing alcohol directly from retail stores.”
The tax had been suspended in January 2023 as part of a Dubai Municipality initiative, initially planned for one year and later extended through December 2024.
One unnamed restaurant owner expressed surprise, saying they had anticipated a smaller increase. “We were expecting a 15% tax, but it has been confirmed by alcohol retailers that the previous 30% rate will return,” they noted.