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Oman: Guidance clarifying and implement excise tax on certain products

Oman: Guidance clarifying and implement excise tax

The government in Oman issued guidance to implement and clarify the excise tax.

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Background

Royal Decree No. 23/2019 (published in the official gazette in March 2019) allowed for the introduction of excise tax in Oman 90 days after the date of publication (13 March 2019). Excise tax rules, therefore, were effective in Oman from 15 June 2019. The executive regulations under the excise tax regime, however, were pending publication (the regulations could be published within six months of 13 March 2019). The new measures did not specify which goods would be subject to excise tax or what would be the excise tax rate.


Excise tax

The Ministry of Finance published Ministerial Decision No.112/2019 (2 June 2019) as guidance for determining the type, value, and tax rate applicable to excisable goods. According to this guidance, excise tax is imposed at a rate of 50% on carbonated drinks and alcohol and at a rate of 100% on energy drinks, pork products, and tobacco products.

The guidance clarifying the excise tax law has an effective date of 15 June 2019.

The excise tax is imposed on importers, manufactures and warehouse keepers of the identified goods in Oman. These taxpayers are required to pay the amount of excise tax due and to file excise tax returns on a quarterly basis.

In addition, as a one-time transitional compliance measure, the excise tax was also imposed on all businesses holding inventory of goods subject to the excise tax as of 15 June 2019. 

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