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Legislative amendments for introduction of excise tax on sweetened beverages in Oman from 1 October 2020 issued

The Oman Tax Authority (TA) announced the introduction of excise tax on sweetened beverages from 1 October 2020 on social media a couple of weeks ago. The TA has now issued Decision No. 34/2020 dated 16 June 2020 (Decision No. 34/2020) making necessary legislative amendments. Decision No. 34/2020 amends Decision No. 112/2019 dated 2 June 2019 on Determination of value, types of excise goods and rate of tax imposed on each of such goods (Decision No. 34/2020) to enable the implementation of excise tax on sweetened beverages with effect from 1 October 2020.

You can access KPMG’s unofficial English translation of MD No. 112/2019 dated 2 June 2019 on Determination of value, types of excise goods and rate of tax imposed on each of such goods as amended by Decision 34/2020 here.

Decision No. 34/2020 provides more clarity and, in certain cases, also makes certain deviations from the information originally released on social media by the TA on the scope of the proposed levy. In particular, the inclusion of sugar substitutes in the scope of “sugar” in the context of sweetened beverages for the purposes of excise tax.

KPMG’s original tax alert, addressing frequently asked questions on the extension of excise tax to the new category of excise goods, has been updated to reflect the clarification and deviations. You can access the updated tax alert here.

If you need any assistance with excise tax in Oman, please reach out to your tax advisors at KPMG or the contacts mentioned below.