Dubai to Reinstate 30% Alcohol Sales Tax Starting January 2025

Dubai will reintroduce a 30% tax on alcohol sales starting January 1, 2025. The decision was communicated to restaurants and bars by alcohol retailer African + Eastern through an email confirming the change.

“Please note, Dubai Government have informed us the 30 per cent municipality tax on alcoholic beverage purchases will be reinstated effective January 2025,” the email stated. “This will apply to all orders invoiced from January 1, 2025. Dubai Municipality requires all necessary systems to ensure compliance with this fee.”

The move, confirmed by several restaurateurs, is expected to influence consumer buying habits. Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, noted, “This presents an opportunity for hotel-based outlets. We anticipate more guests opting to visit our establishments rather than purchasing directly from retail stores, as we will continue to offer discounts and deals on alcohol.”

The reinstatement follows a year-long suspension of the tax announced in January 2023, which was later extended through December 2024.

One unnamed restaurateur expressed surprise, stating, “We were expecting a 15 per cent tax, but alcohol retailers have confirmed the return of the full 30 per cent.”

The reintroduction of the tax is set to reshape the dynamics of alcohol sales in the emirate as businesses and consumers adapt to the change.

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