Oman Likely to Declare Excise Tax in Three to Six Months

In the words of a leading Muscat-based tax expert, there might be a formal announcement on the Excise Tax introduction within the next three to six months. This could create an annual revenue for the the Oman government around RO 300 million.

It would be imposed on particular beverages and good that are deemed to have been harmful for consumption(hence dubbed as ‘Sin Tax’) as the new levy would be a constituent of the new tax increases and proposal announced in the State Budget 2017. The items in the tax purview include alcohol, tobacco energy drinks and sugar-sweetened beverages.

As per the information from sources, the Excise tax would be introduced by the Royal Decree Issuance which promulgates its introduction. It might be introduced by 31st December this year or the first 2018 quarter. The Excise Tax being an indirect tax  is charged only when  the consumption happens and the tax to be implemented here would affect the distributors, retailers and certainly the consumers. Presently,there are no specific details about the collections expected by the Oman Government for Excise Tax

Finally, there would be a significant increase in the collection of the Excise Tax like the other GCC countries which had the similar experience of introducing the same.