New executive order issued on municipal fees for hotel establishments

Eng. Hussain Nasser Lootah, Acting Director General of Dubai Municipality said that the Executive Order No.2 for 2006 regarding the system has been issued after it was approved by the Chairman of Dubai Executive Council Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum.

He said that upgrading of the concerned legislations, laws and local orders regarding collection of fees in this field became necessary due to the rapid development of tourism industry in the emirate in the recent years.

"The number of global and local companies willing to invest in this sector has increased. It is also necessary to educate those in charge of and involved in this field about their commitments consequential to the application of the system," Lootah said.

"Hence, the Municipality has been keen to include in the Executive Order on Municipal Sales Fee System for Hotel Establishments the duties and obligations of all the concerned sides regarding the application of the system whether it is Dubai Municipality officials or the guests or current and prospective investors and tourism license holders, be it the investors or those who rent their trade license to others," he said.

The new system and the Executive Order include the list of violations and fines in addition to the sale items that are subjected to municipal fees and not subjected to fees. Explanations on the action in a number of cases are also given so that there is no confusion or omissions in order to achieve justice in the fee calculations.

Mohammed Abdul Kareem Julfar, Assistant Director General of Dubai Municipality for Finance and Properties Affairs explained that the system demands from the hotel establishments, restaurants, night clubs, and tourist companies working as facilitators of land and sea tours to pay 10% of their sales as municipal fees before the 16th of the month following the month of entitlement.

He said the system exempts the hotel establishments that stop their activities as a whole or partly, provided they report to the Municipality immediately about the reasons for stopping and submit the supporting documents.

Julfar stated that the new system and Executive Order stress on the importance of keeping account records in order by the hotel establishments, getting the final accounts approved by licensed auditors in the country, allocating the amount for fees by including it clearly in the budget of the hotel establishment, which can be audited as the fixed municipal fees, ensuring the validity of the fee account and payment, and also on the part of the hotel establishments to keep their records of not less than five years.

The new Executive Order and the system exempt the UAE nationals from paying the municipal fees for wedding parties held in the hotel establishments. It also allows the bodies involved to apply the system for giving federal exemption or exemption from Dubai emirate for fees issued or to benefit from law.

Julfar also asked all the hotel establishments to register in the e-government services system of Dubai Municipality for hotel establishment activity revenues as the system allows the hotel establishments to enter their monthly revenues, pay the fees, take print outs for payment permission and also get briefed about all previous transactions such as the payment vouchers, fines and claim notices.

The system also provides the hotel establishments the option for updating their statements and using e-letters with Dubai Municipality in order to simplify the procedures and save time.

Dubai Municipality appealed the hotel establishments to benefit from the various modes of payment in the Municipality; among them is e-payment through the advanced finance system and direct payment in the bank account approved by the Municipality for this purpose.

A clause is included in the Executive Order for the system No. 2 of 2006, which says that the hotel establishments can also complain and the decision on the complaint will be taken during the month in which it was submitted.