After reinstating the rate of excise tax on alcohol and alcohol products to 100% from 1 July 2020, the Oman Tax Authority has now announced the introduction of excise tax on sugar sweetened beverages at 50 percent, from 1 October 2020.
Oman is the third country in the Gulf Cooperation Council to introduce excise tax on sugar sweetened beverages. The Kingdom of Saudi Arabia and the United Arab Emirates introduced excise tax on sugar sweetened beverages on 1 December 2019. Bahrain and Qatar introduced excise tax on 30 December 2017 and 1 January 2019, respectively, but are yet to announce the introduction of excise tax on sugar sweetened beverages.
While the legislative amendments are still awaited, the Oman Tax Authority has released some information on the proposed expansion on social media.
Our tax alert addresses frequently asked questions on the extension of excise tax to the new category of excise goods, the next steps for businesses to prepare for introduction and how KPMG can help. You can access our tax alert below.