Dubai cancels 30% tax on alcohol sales
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Dubai authorities have decided to temporarily abolish the high tax of 30% on the sale of alcohol to develop local business and tourism, informed Bloomberg.
The UAE banned the sale of alcohol to Muslims, so the move is aimed primarily at tourists and foreigners living in the country, who make up over 80% of the country’s ten million population. As the agency notes, high prices forced many residents to go to neighboring emirates for alcohol, where prices are much lower. One of Dubai’s two alcohol distributors, Maritime and Mercantile International, has already placed ads urging them not to travel. African & Eastern, another distributor, also cut prices.
Along with the abolition of the tax, it becomes free to obtain a license to purchase alcohol, which previously cost $70 (it still remains mandatory). The measure is introduced as an experiment for one year, while VAT on the sale of alcohol in the amount of 5% will continue to be charged.
As Bloomberg notes, alcohol is still completely banned in Saudi Arabia, while other countries in the region, such as Qatar and Oman, are heavily taxed.
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