Sky-high booze costs usually immediate Dubai residents to journey to neighboring emirates, the place alcoholic drinks value much less

Any resident of Dubai, who needs to eat, transport or inventory alcohol is legally required to own a liquor license. The liquor licenses might solely be issued to individuals aged 21 or older, and value 270 dirham ($73) a 12 months, every.

There’s additionally a 30% tax on alcoholic drinks collected by Dubai authorities.

In Dubai, often known as the Gulf’s “get together capital,” the worth of 1 bottle of beer usually tops $10, whereas a bottle of wine might simply value over $100. The sky-high booze costs usually immediate Dubai residents to journey to neighboring emirates, the place alcoholic drinks value much less.

In keeping with an announcement from two main UAE retailers, as of this Sunday, Dubai authorities has eradicated a 30% tax on alcohol and 270-dirham payment for liquor licenses, making them free to acquire.

In a sequence of posts on Instagram, Maritime and Mercantile Worldwide (MMI), one of many largest alcohol shops in Dubai, praised the transfer as “BIG BIG NEWS,” celebrating that folks “now not have to make journeys throughout the nation to top off on favourite drinks.”

“With the elimination of [the] 30% municipality tax and FREE alcohol license, shopping for your favourite drinks is now simpler and cheaper than ever!” MMI declared.

One other main emirati booze vendor, African + Jap, confirmed the brand new. Nevertheless, a 5% VAT fee nonetheless applies to alcoholic beverage purchases, the retailer added.

New laws got here into power yesterday, however it’s not clear whether or not they’re right here to remain on a everlasting foundation. In keeping with native media studies, new adjustments in alcohol commerce legal guidelines are of their trial part and can stay in impact for a 12 months for now.

The choice to chop taxes on alcoholic drinks comes after Dubai permitted a brand new tourism technique in November in a bid to spice up its competitiveness and entice 100 billion dirham ($27 billion) in extra funding by 2031.

In keeping with a chief economist of Abu Dhabi Industrial Financial institution, Dubai authorities’s determination “ought to additional assist the tourism and hospitality sectors.”

The transfer will “even be welcomed by many residents, who’re predominantly expatriates,” financial institution official added.

Practically 90% of the inhabitants of the United Arab Emirates (UAE), the place Dubai is the most important metropolis, are expatriates.