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…
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.
Municipality Fees on dining? Maybe only in some places. Not seen in smaller Indian restaurants though VAT seems to be there.
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 rulingEdited: 12 June 2018, 19:27
Does this mean that if we have prepaid for a hotel, in August that we can expect a refund (she cheekily asks!!)
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.