Dubai abolished tax levied on alcohol while prices in Turkey are expected to increase
While the 30 percent tax levied on alcohol was abolished in Dubai under the new regulations, the personal alcohol license application that people must carry with them was also discontinued. This decision was allegedly taken to revive tourism.
Dubai has also gone to flex its rules on drinking as part of moves to revive tourism. Previously, the sale of drinks was allowed during Ramadan in the daytime in the country, and during the pandemic period thus paving the way to delivery of drinks to homes.
Two companies engaged in the distribution of drinks in Dubai announced that the abolition of the tax would be reflected in the prices of drinks.
Media reported that the abolition of the tax on the drink would undergo a one-year trial process and, accordingly, would be made permanent. Dubai is known as the “party capital” among the Gulf countries.
SITUATION IN TURKEY
A tax specialist had calculated the tax rate on alcohol for RAKI (70 degrees) as follows:
Product price including dealer profit and other expenses: 94.12 TL
EXCISE DUTY: 189.78 TL, VAT 51.10 TL, TOTAL TAX: 240.88 TL
The recommended selling price is 335 liras.
30 PERCENT PRICE HIKE EXPECTED FOR ALCOHOL AND CIGARETTES
As of the new-year 2023, taxes on food products, food cleaning products have increased by about 30 percent. As of January 1, 2023, eyes have been turned to cigarette and alcohol prices. Hikes in sticker prices are reflected in many items, while cigarette and alcohol prices are also expected to increase.
