Dubai has suspended a tax of 30% on alcohol and dropped the license fee needed to buy alcohol.
The move is expected to further boost Dubai’s appeal to tourists and expatriate residents drawn by its more liberal lifestyle compared to other Gulf cities.
Domestic media have said that the changes took effect on Sunday to run for a trial period of a year.
“With the removal of 30% municipality tax and a free alcohol license, buying your favorite drinks is now easier and cheaper than ever,” MMI, one of two significant purveyors of alcohol in Dubai, said on its Instagram account.
It added that prices in its stores across the emirate reflect the tax’s removal.
Another retailer, African+Eastern, confirmed the tax no longer applied, but prices would remain subject to a 5% value-added tax (VAT).
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The Dubai Media Office did not immediately respond to a request for comment.
Dubai’s economy has rebounded swiftly from the COVID-19 pandemic, with GDP growing 4.6% on the year for the first nine months of 2022.