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Dubai municipality fees reduced

Dubai, United Arab...
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Dubai municipality fees reduced

Dining out is going to get cheaper! Yesterday it was announced that municipality fees will be reduced from 10% to 7% https://m.khaleejtimes.com/news/government/s…

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5 replies to this topic
Dubai, United Arab...
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1. Re: Dubai municipality fees reduced

I am not sure if 3 percent on municipality fee will make any difference. If i am not mistaken this fee applies on the annual rent, for commercial it was 10 percent and for private-non commercial it was 3 percent.

If a restaurant was paying AED 150,000 rent per year, he was paying AED 15,000 municipality fee.

He will pay AED 10,500 per year now, saving only 4,500.

Dubai, United Arab...
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2. Re: Dubai municipality fees reduced

Municipality Fees on dining? Maybe only in some places. Not seen in smaller Indian restaurants though VAT seems to be there.

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3. Re: Dubai municipality fees reduced

The municipality fee that is reduced applies only to

1) Hotel room rates

2) Restaurants and other facilities inside hotels such as spas

Any restaurant inside a hotel typically charges 10% SVC fee + 10% Municipality and VAT

Now it will be 10 +7 -i.e. 17% as taxes over menu items

Normal restaurants outside hotels never had a municipality fee and not affected by this ruling

Edited: 12 June 2018, 19:27
County Limerick...
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4. Re: Dubai municipality fees reduced

Does this mean that if we have prepaid for a hotel, in August that we can expect a refund (she cheekily asks!!)

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5. Re: Dubai municipality fees reduced

This is only at the government policy level decision, which a committee has accepted. Yet to be implemented, and it will hardly be possible to get any refunds for past transactions.

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