MUSCAT: Oman will raise taxes on tobacco, alcohol, soft drinks and energy drinks from June, according to the National Tobacco Control Committee (NTCC) rapporteur. Increasing taxes on fast food is also on the agenda as authorities are looking to control the spread of Non-Communicable Diseases (NCDs) which have risen sharply in the sultanate over the last few years.
Dubbed as ‘sin tax’, the new excise tax to be imposed on selected goods and beverages seen to have a level of harm associated with their consumption, was first unveiled in Oman’s 2017 budget.
Tobacco products, alcoholic beverages and energy drinks will attract an excise tax of 100 per cent, while that on fizzy drinks will be 50 per cent.
The step is based on the decision taken by the Supreme Council of the Gulf Cooperation Council at its 36th session held in Riyadh in 2015. Following this, Saudi Arabia announced the introduction of excise tax in June 2017, the UAE followed with effect from October 2017 and Bahrain from December 30, 2017.
Dr Jawad al Lawati, rapporteur at NTCC, said that the excise tax will be levied by mid-year. ‘Oman has signed the regional agreement with GCC on the excise tax. Now, the national authorities (Oman, Qatar and Kuwait) have to ratify it before it is implemented. In Oman, it is expected to start from June,’ he said, adding that only Qatar and Kuwait are lagging behind.
Dr Lawati said that the new tax will be levied on the sale price. ‘With this, the tax on tobacco products will be a mix of customs duties and excise tax.’
