Dubai has removed its 30% alcohol tax with an aim to boost tourism.
Along with this, Dubai will also remove charges on personal alcohol licenses, which will also people to drink at home with convenience. The move was made on Sunday, 1st of January.
Dubai has been becoming soft on laws pertaining to alcohol as it has pulled back restrictions on the sale of alcohol in the daytime, during Ramadan, and given the green signal to home delivery during the coronavirus.
The decision is believed to have been made in an attempt to attract foreigners to the Middle Eastern city, in the wake of competition from neighbors.
The duo firms which sell alcohol in Dubai, Maritime and Mercantile International (MMI), and African & Eastern, said they would show the tax cut for consumers.
“Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive, and inclusive for all,” MMI spokesman Tyrone Reid told the American news agency the Associated Press (AP).
“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”
It is unsure whether the decision will be permanent. The Financial Times, the British daily, called the move a one-year trial, citing “industry executives informed of the decision”.
People from outside are more compared to the nationals who are one in nine in Dubai, popular as the Gulf’s “party capital”, and they usually buy alcohol in bulk from Umm al-Quwain and other emirates.
Dubai has since older times attracted more tourists and rich foreigners than its immediate neighbors, firstly due to its culture of a more liberal lifestyle. However, currently, it has attracted more competitors from around who are developing their hospitality and finance sectors.
To consume, transport, or keep alcohol at home in Dubai, non-Muslim residents must be at least 21 years old and possess an alcohol license, which is a plastic card given by the police.
