Up to 98 percent of restaurants and cafes are now complying with new rules making it illegal for some to add a service charge to the bill, a top UAE official has said.
Sultan Bin Saeed Al Mansouri, Minister of Economy and chairman of the Supreme Committee for Consumer Protection, said fines had been imposed on violators, without giving details of how many had been handed out.
New legislation, which was implemented on February 1, makes it illegal for all restaurants and cafes not subject to additional taxes by municipalities or other government agencies to add a service charge.
Al Mansouri praised the efforts made to prevent restaurants from levying additional service charges.
“We have succeeded in creating equilibrium and stability in the UAE markets. By coordinating with local government departments all over the UAE, the committee is exerting tremendous efforts to monitor prices and prevent any price manipulation attempts,” he added.
The rule only applies to restaurants that operate independently outside hotels and clubs.
Hotels and outlets inside them impose services charges but also pay a municipal tax, which is 10 percent of the bill in Dubai.
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