Abu Dhabi has ordered cuts to its municipality fees at local restaurants and hotels, a day after Dubai proposed cuts to its municipality fees.

The Abu Dhabi Executive Committee has approved a proposal to reduce tourism fees from 6% to 3.5% and municipality fees to 2%, it was revealed.

The programme to reduce tourism fees, which was proposed by Mohamed Khalifa Al Mubarak, the chairman of the Department of Culture and Tourism – Abu Dhabi, forms part of the Abu Dhabi Development Accelerators Programmes launched by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

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The committee also sanctioned a proposal to reduce municipality fees for hotel rooms from AED15 to AED10 per room per night. Additionally, the fees will now be collected half-yearly, rather than on a monthly basis.

Dubai is slashing municipality fees on sales at local restaurants and hotels from 10% to 7% and last week the Dubai Executive Council also ordered a 50% reduction in “market fees” imposed by Dubai Municipality.