ROME (AP) — Dubai ended its 30% tax on alcohol sales within the sheikhdom Sunday and made its required liquor licenses free to acquire, ending a long-standing income for its ruling family to apparently further boost tourism to the emirate.
The sudden Latest 12 months’s Day announcement, made by Dubai’s two state-linked alcohol retailers, got here apparently from a government decree from its ruling Al Maktoum family. Nevertheless, government officials didn’t immediately acknowledge the choice and didn’t reply to questions from The Associated Press.
Nevertheless, a pint of beer easily can cost over $10 at a bar, with other drinks running even higher. It wasn’t immediately clear if this may cause a price drop at alcohol-serving establishments or if it only would affect those buying it from retailers.
Political Cartoons
Alcohol distributor Maritime and Mercantile International, which is an element of the broader Emirates Group, made the announcement in an announcement.
“Since we began our operations in Dubai over 100 years ago, the emirate’s approach has remained dynamic, sensitive and inclusive for all,” said Tyrone Reid of MMI. “These recently updated regulations are instrumental to proceed ensuring the secure and responsible purchase and consumption of alcoholic beverages in Dubai and the UAE.”
MMI didn’t reply to a matter over whether the choice was everlasting. Nevertheless, an ad put up by MMI urged customers to purchase from its stores, saying “you now not must drive out to the opposite emirates.” Dubai residents long have driven into Umm al-Quwain and other emirates for bulk, tax-free alcohol purchases.
African & Eastern, the second alcohol retailer believed to be at the very least partially held by the state or affiliated firms, also announced the tip of the municipality tax and license fees.
Under Dubai law, non-Muslims should be 21 or older to eat alcohol. Drinkers are presupposed to carry plastic cards issued by the Dubai police that allow them to buy, transport and eat beer, wine and liquor. Otherwise, they’ll face fines and arrest — despite the fact that the sheikhdom’s vast network of bars, nightclubs and lounges almost never ask to see the permit.
Still, relatively liberal Dubai is an outlier amongst others within the region. Sharjah, an emirate that borders Dubai to the north, outlaws alcohol, as do the nearby nations of Iran, Kuwait and Saudi Arabia.
Abu Dhabi, the capital of the oil-rich UAE, ended its alcohol license system in September 2020. The announcement Sunday also got here because the UAE prepares to introduce a 9% corporate tax in June atop of other fees and charges it levies while avoiding personal income taxes.
Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.
Copyright 2023 The Associated Press. All rights reserved. This material might not be published, broadcast, rewritten or redistributed.
