Dubai ends 30 per cent tax on alcohol sales, fee for liquor licenses

Dubai ended its 30 per cent tax on alcohol sales in the sheikhdom on Sunday and made its required liquor licenses free to obtain, ending a long-standing source of revenue for its ruling family to apparently further boost its tourism to the emirate.

The sudden New Year’s Day announcement, made by Dubai’s two state-linked alcohol retailers, came apparently from a government decree from its ruling Al Maktoum family. However, government officials did not immediately acknowledge the decision and did not respond to questions from The Associated Press.

But it follows years of loosening regulations over liquor in the sheikhdom, which now sells alcohol during daylight hours in Ramadan and began providing home delivery during the lockdowns at the start of the coronavirus pandemic.