Oman prepares for sin tax

Oman is due soon to follow in the footsteps of Saudi Arabia, the UAE, Bahrain and Qatar in imposing a selective tax on tobacco, alcohol, energy and carbonated drinks, according to a story in The Muscat Daily.

The imposition of a new 100 percent excise tax will double the retail prices of tobacco products, alcoholic beverages and energy drinks, while carbonated drinks will attract a 50 percent excise tax.

The Gulf Cooperation Council (GCC) member countries’ framework on ‘Unified Selective Excise Tax’ is expected to be formally ratified this year. It was reviewed and endorsed by the Majlis A’Shura (Consultative Council) and the State Council at the end of 2018.

Speaking to the Daily, Dr. Jawad al Lawati, rapporteur at the National Tobacco Control Committee, said that except for Oman and Kuwait, all GCC states had ratified and implemented the selective excise tax. “As it has already been vetted by the Majlis A’Shura and State Council, only a Royal Decree is awaited for it to become a law,” he said.

The new taxes were first unveiled in Oman’s 2017 budget.

They have been dubbed ‘sin’ taxes because they are imposed on consumer goods considered to pose a risk to health.