Dubai: Dubai Municipality on Thursday said it will start deducting 50 per cent of “market fee” on businesses with immediate effect.
Dubai Executive Council on Wednesday said the civic body would cut the market fee imposed on businesses by half.
“This will come into effect immediately,” Syed Esmail Al Hashemi, director of General Revenue Department at Dubai Municipality, told Gulf News on Thursday.
The market fee is five per cent of the annual rent of the commercial establishments.
“These payments are made once a year at the time of renewing the trade license,” Al Hashimi said.
Though the fee is paid to Dubai Economy (DED), it is accepted as “fees for external departments” and channelised to the civic body.
As per the instruction from the executive council, the municipality will now charge only 2.5 per cent of the rent as market fee from private businesses.
“All commercial firms that have a trade license will benefit [from the government’s move],” the official said.