The measure, which has already entered into force, has been welcomed with great satisfaction by several retailers, considering that it will help increase their attractiveness to the tourism industry.
The changes were envisioned to run for a trial period of one year, and the consequences will be evaluated in due course to see how the decision has impacted different business activities. Dubai retailer MMI said on social media: "With the removal of the 30 percent city tax and a free alcohol license, buying your favorite drinks is now easier and cheaper than ever."
Another Dubai retailer, called African+Eastern, also confirmed that the news is true and that taxes will no longer apply, but suggested that its prices would still be subject to 5 percent VAT, despite the changes.
Dubai's economy has been touted to have experienced GDP growth of 4.6 percent per year for the first nine months of 2022. Added to this, with tourism driving its economy, the number of tourists to the city was reported to have grown more 180 percent in the first half of 2022 compared to the same period in 2021.
