Dubai to Reinstate 30% Alcohol Sales Tax Starting January 2025
Dubai will reintroduce a 30% municipality tax on alcohol sales from January 1, 2025, as confirmed by retailer African + Eastern.
The tax, initially lifted in January 2023 as part of a 12-month trial, was extended until the end of December 2024. However, the Dubai Municipality has now announced the tax’s reinstatement, requiring all hospitality businesses to comply.
During the tax-free period, only a few retailers passed on the savings to customers. As a result, the reintroduction of the tax is expected to affect consumers most when purchasing alcohol directly from retail stores, rather than through hotels, restaurants, or bars.
