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Effective 15 June 2019, the Oman Tax Authority (OTA) introduced excise tax on alcoholic beverages, carbonated drinks, energy drinks, pork and pork products and tobacco and tobacco products. Royal Decree No. 23/2019 (Excise Tax Law) provides for levy of excise tax. You can access KPMG’s unofficial English translation of the Excise Tax Law, released last year, here.

The OTA has now published the Executive Regulations to the Excise Tax Law vide Tax Authority Decision No. 51/2020 (Excise Tax Executive Regulations). These, among others, provide more detail on:

  • Procedures for excise tax registration and deregistration
  • Conditions for setting up and operation of excise tax warehouses for excise tax suspension
  • Other situations qualifying for excise tax suspensions
  • Excise tax exemptions and refunds
  • Procedure for excise tax inspections and audits
  • Excise tax dispute resolution, including objections and appeals
  • Administrative penalties

You can access the Excise Tax Executive Regulations in Arabic here.

You can also access KPMG’s unofficial English translation of the Excise Tax Executive Regulations here.

The base for excise tax in Oman is steadily expanding. The OTA has increased the rate of excise tax on alcoholic beverages from 50 percent to 100 percent, effective from 1 July 2020, and also announced the introduction of excise tax on sugar sweetened beverages with effect from 1 October 2020. You can access KPMG’s publication on frequently asked questions on the extension of excise tax to the new category of excise goods here.

Excise tax can have a significant impact on a business’s profitability and operations. In some cases, planning can help minimize the excise tax cost. The Excise Tax Executive Regulations provide detailed rules and allow excise tax payers the opportunity to review, plan and manage their excise taxes efficiently.

We have a dedicated team of indirect tax specialists in Oman. If you need any assistance with any excise tax related matters in Oman, please reach out to your tax advisors at KPMG.