Oman to impose 100% excise tax on alcohol

The Sultanate of Oman is preparing to introduce a 100% excise tax on alcohol, tobacco and energy drinks in a bid to tackle health issues in the region.

The tax will come into effect on 15 June and will include pork products. Carbonated drinks will be hit with a 50% excise tax.

According to documents issued by the Secretariat General for Taxation of Oman, the state has been “considering the need to diversify non-hydrocarbon revenues” used to fund improvements to the country’s public healthcare system.

The statement continued: “Although Oman’s citizens’ and residents’ overall health in recent years has improved, more needs to be done to tackle health issues.”

Oman’s introduction of the excise tax follows similar moves from other Gulf Cooperation Council countries, such as the UAE, Bahrain and Qatar.

The new law was issued by His Majesty Sultan Qaboos bin Said by Royal Decree on 13 March 2019.

Once the new regulation comes into effect, excise tax will be payable at the production or import stage of each affected product.

According to the Secretariat General for Taxation, “businesses will need to make commercial decisions as to how they will adjust their pricing” following the tax’s introduction, which could see the increased cost of goods passed onto consumers in the region.

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Author: Owen Bellwood {authorlink}