Oman to impose 100% tax on alcohol and energy drinks

The Sultanate of Oman is set to introduce a 100% tax on tobacco, alcoholic beverages and energy drinks to address health issues in the country.

Beginning 15 June, Oman will also impose an excise tax on pork products and carbonated drinks, according to the documents released by the Secretariat General for Taxation of Oman.

Funds raised from the tax will be used to make improvements to the country’s public healthcare system. Once the new rule comes into effect, the excise tax will be applicable either at the production or import stage of each affected product.

The law was issued by Sultan Qaboos bin Said by Royal Decree on 13 March this year.

Survey and tax agreements director general Sulaiman bin Salim al-A’adi was quoted by Reuters as saying: “The excise tax is a consumption tax and is considered to be indirect taxes.

“Thus, the final charge is on the consumers, but it is collected in advance at a stage of the supply chain, notably through the business sectors.”

Oman initially planned to introduce a 5% value-added tax last year, which is now expected to start next year.

Oman’s decision follows a similar stance by Qatar, which introduced an alcohol tax in January this year. This decision was part of the Selective Tax law that was introduced last year to heavily tax goods such as tobacco and energy drinks.