30% Alcohol Sales Tax to Be Reintroduced in Dubai in 2025

Starting January 1st, 2025, Dubai will reinstate a 30% municipality tax on alcohol sales, after a two-year suspension. Originally lifted at the end of 2022, the tax was intended to be temporary, lasting only through 2023. However, the suspension has been extended for another year, until the end of 2024.

During the tax break, restaurants, bars, and suppliers benefitted from reduced costs, with alcohol suppliers such as MMI and African + Eastern lowering their prices in stores. Many bars and restaurants passed on savings to customers, though the full 30% reduction wasn't always reflected in final prices.

The reintroduction of the 30% tax will affect both consumers and businesses. For the public, this may mean higher prices at bars and restaurants, although some establishments might absorb part of the cost. For businesses, the return of the tax signals a return to previous operating costs.