Dubai distributors to swallow 30% tax on alcohol brands

January 3, 2025, 8:17 AM

Dubai alcohol tax — In the months after the removal of the alcohol sales tax, most Dubai hospitality venues did not pass on the savings to consumers

MMI and African and Eastern takes hit
Tax reintroduced on January 1
Ends suspension since 2023

Dubai’s two main alcohol distributors have promised to absorb most, and in some cases all, of the 30 percent tax that was reinstated on alcoholic drinks from January 1.

The Dubai Municipality tax on alcoholic beverages was suspended from the start of 2023, continuing into 2024.

It was widely seen as an attempt to make the city more affordable for visitors and residents.

However, in the months after the removal of the alcohol sales tax, most Dubai hospitality venues did not pass on the savings to consumers.

AGBI reported last month that Dubai Municipality planned to reintroduce the tax from January 1.

Maritime and Mercantile International (MMI) and fellow distributor, African and Eastern, did pass on the savings from the suspension of the alcohol sales tax in Dubai, and subsequently saw their sales soar by at least double-digit figures year-on-year in the first six months of 2023.

A spokesperson from African and Eastern said the distributor was holding prices on all product lines and brands for the month of January and will update in due course what it’s policy will be long-term.

“We’re offering you Dec 2024 prices in Jan 2025, even with the sales tax reintroduced… At all 33 African+Eastern Dubai Stores and online,” it said in the Instagram post this week.

Tyrone Reid, Group CEO of MMI and Emirates Leisure Retail, said in a press statement on Thursday the distributor was “committed to maintaining our current, competitive prices on over 200 customer-loved items.” The brands that will see prices remain static include popular names such as Heineken, Moët & Chandon and Absolut.

MMI is a subsidiary of the state-owned Emirates Group, the parent company of Emirates airline and owned by the Investment Corporation of Dubai, a sovereign wealth fund. It operates 24 stores across Dubai.

African and Eastern was established more than 60 years ago and is a joint venture between a series of local investors and AB Inbev, the world’s largest brewer and owner of brands such as Budweiser and Stella Artois.