Dubai scraps 30% alcohol tax

The Dubai government has removed its 30% tax on alcohol and made personal liquor licences free.

Alcohol distributor and retailer Maritime & Mercantile International (MMI) confirmed it had removed the 30% tax on alcohol sold across its 21 stores in Dubai, based in the UAE.

The retailer said the move followed the government’s directives over the purchase and consumption of alcohol.

From 1 January 2023, personal liquor licences will be free to obtain, MMI said. Drinkers aged 21 and over must have a personal liquor licence to consume alcohol at home.

Consumers are prohibited from drinking alcohol in public in the city.

A valid Emirates ID, or passport for tourists, will still be required to apply for a liquor licence in MMI stores, the distributor said.

Tyrone Reid, group CEO of MMI and Emirates Leisure Retail, said: “Since we began our operations in Dubai over 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.”

The Spirits Business has contacted the Dubai government for further comment.

MMI, a subsidiary of the Emirates Group, is headquartered in Dubai. It is said to be the leading beverage distributor in the UAE and Oman.

In November 2021, alcohol-free ‘spirit’ Lyre’s moved into the Middle East, partnering with distributors such as MMI.