Oman Imposes Excise Tax

Oman Imposes Excise Tax

- Jessica Ashford

Oman recently announced that excise tax will be implemented as of 15th June 2019, this move is to assist the country in expanding their revenue streams and boost the overall economy of the nation. A 100% tax will be introduced for tobacco products, alcohol, meat and energy drinks whilst a 50% tax will be implemented on carbonated drinks. Below is the list of excise tax products and the respective tax rates:

  • Tobacco and tobacco derivatives – 100%
  • Carbonated drinks – 50%
  • Energy drinks – 100%
  • Alcohol – 100%
  • Pork Products – 100%

A detailed guide has been released by the Oman Secretariat General for Taxation, below we cover certain highlights of this guide:

  • The tax will be implemented on the standard product price or the higher retail price, this will be determined by the tax payer.
  • Companies involved in activities which sell, import, buy, manufacture or retail affected products must register for the tax via the SGT portal.
  • Businesses that have stock of products subject to tax implementation and who use these goods for commercial purposes must submit a Transitional excise tax return. You must declare the value and quality of these products at the time of Excise tax implementation and submit the tax return within 15 days of the effective date the law was implemented.
  • Any companies who are involved in manufacturing, importing or storing these Excise products must review their registration requirements as soon as possible. Re-pricing and IT system updates need to be reviewed to include the calculation of the tax.

Will Your Business be Impacted?

The new tax will impact companies which manufacture, import or trade the products which are affected by the tax implementation and other businesses such as retailers, hotels and restaurants which have stock of these products could also be significantly impacted. If your business falls into one of these categories, what actions do you need to take?

First and foremost, to not be negatively impacted, you must act quickly to:

  • Evaluate and really understand what the impact could be in relation to:
    • Product stock
    • Cash flow
    • Supply chain process
    • Contracts in place
  • Evaluate the effect of the new tax on time management and IT Systems:
    • Changes required in the PoS
    • Contract updates
    • Staff time for re-pricing

For more information on Excise Tax in Oman, contact PRO Partner Group on +971 (0)4 456 1761 or email info@propartnergroup.com. Alternatively, you can me directly at natalia@propartnergroup.com.


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