SUMMARY

As per media news, the anticipated Oman Excise Tax Law has been issued by way of Royal Decree 23/2019 on 13 March 2019.

The tax will take effect from 90 days of the official publication of the Law

DETAILS

The Oman Excise Tax law will apply to products that are considered harmful to health or the environment, and is expected to include the following products:

• ●
• Tobacco – 100% Excise Tax

• ●
• Alcohol – 100% Excise Tax

• ●
• Pork products – 100% Excise Tax

• ●
• Energy drinks – 100% Excise Tax

• ●
• Carbonated drinks – 50% Excise Tax

This tax is expected to apply to importers, ‘stockpilers’ and local producers of the relevant excise goods.

CONSIDERATION FOR BUSINESSES

The Excise Tax will bring significant change for businesses that import, manufacture or trade in Excise goods in Oman.

It is recommendable for companies dealing in Excisable goods to monitor further updates from the authorities and prepare themselves for expected changes it can bring in the business operations. Companies in Oman may also consider the implementation procedures in other GCC counties where the same has already been applied.

Some of the areas that may need consideration are such as pricing, storage under controlled environment, documentation requirements, when to apply such Excise Tax. Businesses will also need to ensure compliance with likely transitional rules.

More details to follow as updates are released by the Authorities.

Date of article preparation: 18 March 2019

DISCLAIMER:

This document is only for information purposes and should not be construed as an advice. It does not necessarily covers each aspect of the topic with which it deals. You should not act upon the contents of this document without receiving formal advice on your particular circumstances.

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