The Dubai government has eliminated a 30% alcohol tax in an effort to draw more tourists.
In addition, Dubai will make personal liquor licences free to everyone in the United Arab Emirates, eliminating the cost of application.
Dubai is one of the most visited cities in the United Arab Emirates, which has a positive impact on the city's economy.
The most recent alteration is the government's goal to make the city more desirable in order to compete with other Persian Gulf nations like Saudi Arabia and Qatar for visitors and expats.
Two Dubai-based alcohol wholesalers, Maritime and Mercantile International (MMI) and African & Eastern, announced the tax cut on Sunday in an effort to draw in more customers.
The government's announcement to eliminate the 30% tax on alcohol sales, according to Tyrone Reid, the worldwide CEO of MMI and Emirates Leisure Retail, prevented the firm from acting quickly.
Reid said that liquor licences might be obtained for free by anyone who fulfil the city's age and other requirements to buy alcohol.
The purchase of an alcohol licence at any of MMI's 21 sites requires a valid Emirates ID or passport for visitors, he added.
“Following the announcement by the government of Dubai to remove the 30 percent municipality tax on sales of alcoholic beverages, we are pleased to announce that this will be reflected across all alcoholic beverage products in all our 21 MMI stores in Dubai, effective 1st January,” Reid said in a statement on Sunday.
“Since we began our operations in Dubai more than 100 years ago, the Emirate’s approach has remained dynamic, sensitive, and inclusive for all.
“These recently updated regulations are instrumental to continue ensuring the safe and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”
MMI urged customers to “take advantage on these huge savings and stock up and apply for a free licence,” although the company noted that value-added tax (VAT) would still be due on its services.
While Dubai is repealing its massive tax on alcoholic items, countries in West Africa, such as Nigeria, have begun imposing a sugar tax of N10 per litre on all non-alcoholic, carbonated, and sweetened beverages.
According to Prime 9ja Online’s sources, the government of Nigeria is considering implementing a 20% tax increase on non-alcoholic beverages.