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Oman to impose 100% tax on tobacco

11 Jun 2019. The Sultanate of Oman will introduce a 100 per cent tax on tobacco, alcohol, sugary drinks and pork meat from June 15, The National reported.

In a statement reported by Omanís national news agency ONA, Sulaiman bin Salim Al Aadi, director-general of survey and tax agreements, said the electronic system is ready to be rolled out. There will be a 90-day grace period allowing people and companies to register for the tax, which will come into effect once the grace period ends. The new tax is in accordance with the agreement concluded between all six nations of the Gulf Cooperation Council (GCC) and the royal decree of Sultan Qaboos bin Said, the report said. The six-member GCC has pledged to introduce excise and other taxes, including VAT, to increase revenues from the sale of the non-oil business and to reduce consumption of harmful products that cause diabetes, obesity and other health problems.

According to the report, the kingdom already has a 100 per cent excise duty on cigarettes and other tobacco products, and a 50 per cent tax on energy drinks. The new taxes could generate about OMR 100 million (EUR 229 million) annually.