Why it could be happy hour for Dubai tourists after alcohol tax is scrapped

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Dubai announced it would drop its 30% alcohol tax, as well as the fee tourists and expats previously had to pay for a license to buy alcohol from stores to drink in private.

According to Karolak, the new rules are in line with other social changes implemented in recent years. These include the shift to a Saturday-Sunday weekend, which was previously on Friday and Saturday, food outlets being permitted to continue service during the daytime throughout the holy month of Ramadan, with significantly reduced restrictions, and the creation of a new family law for non-Muslim expat residents.

It is unclear whether the new rules will be permanent. Karolak says the changes will be in place on a trial basis until the end of 2023,"And, no doubt, its extension or not will rely upon the impacts felt in the emirate."Samantha Wood, founder of Dubai-based restaurant review website FooDiva.net, believes that the new initiative will be a"fantastic boost" for Dubai's tourism sector.

But she suspects that not all restaurants will reflect the full tax cut in their prices."I fear many restaurants will use this opportunity to minimize the impact of other rising costs and inflation, including the pending arrival of corporate tax," she explains.

 

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