Following a two-year suspension, authorities in Dubai have reinstated a 30 percent sales tax on alcohol from January 1, 2025.

The Dubai Municipality has instructed businesses to ensure compliance with the tax, effective on all invoices from the start of the new-year.

As per Khaleej Times reports, several restaurateurs have confirmed the move and predict it will impact buying behaviors.

Eti Bhasin, Executive Director at Majestic Retreat City Hotel and Permit Room, sees the tax as an opportunity for hotel-based outlets.

“In our case, we may see guests visiting more often now [rather] than relying on direct purchases from retail stores as we will still be offering discounted rates and deals on alcohol,” she said.

The tax was initially removed in January 2023 to encourage tourism and economic activity.

Although some business owners expected a reduced rate of 15 percent, the full 30 percent tax will now reinstated, impacting alcohol pricing to surge across the emirate.

Source: Khaleej Times