Dubai ends 30 percent tax on alcohol sales

Dubai ended its 30% tax on alcohol sales in the sheikhdom 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 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.Alcohol sales have long served as a major barometer of the economy of Dubai, a top travel destination in the UAE, home to the long-haul carrier Emirates. During the recent World Cup in nearby Qatar, Dubai’s many bars drew commuting soccer fans.However, a pint of beer easily can cost over $10 at a bar, with other drinks running even higher. It wasn’t immediately clear if this would cause a price drop at alcohol-serving establishments or if it only would affect those buying it from retailers.