Dubai has changed its mind on adding a new customs levy to purchases made abroad that cost more than AED 300.
Dubai Customs informed customers through email that the previous restriction of AED 1,000 would be reinstated as of 1 March 2023.
Dubai began charging a 5% customs fee on items costing more than AED 300 in January. Importers were therefore required to pay a 5% tariff as well as a 5% value-added tax (VAT).
The 200% charge on imports of tobacco, tobacco products, e-cigarettes, and vaping liquids was in addition to a “sin tax” on sweetened beverages.
Residents of Dubai who routinely import products will be pleased to see the return of the previous AED 1,000 cap. The action will strengthen the emirate’s retail industry.
Whether the decision to suspend the duty is a temporary or permanent one, though, is still up in the air.