The Ministry of Finance announced that from 1st July 2020, the Sin Tax earlier imposed on production as well as its import on Alcohol and Alcohol products would be restored at 100%.
This news comes over a year later from 15th June 2019, when the selective Excise duty was levied on all alcohol products, energy drinks, carbonated drinks, pork and pork products, and tobacco and tobacco products in line with the remaining GCC nations. The Sultanate of Oman had reduced the tax to 50% in the transitory period for alcohol and its products.
The Department has urged the taxpayers to file transitional returns for the inventory as of 1st July 2020. The products at Duty- Free shops will not come under the purview of this tax. To avoid penalties, the tax dues must be cleared within 15 days from the date of reinstatement of the new rate.
At the time of introducing the original levy, The Secretariat General for Taxation of Oman through the documents issued in public had said that the state has been considering the need to diversify non-hydrocarbon revenues which would in turn be used to fund improvements to the country's public healthcare system. The Sin Tax is a countermeasure in response to this vision.
You can access Law including Guidelines, Cabinet & FTA Decisions, Public Clarifications, Forms, Business Bulletins for all taxes (Vat, Excise, Customs, Corporate Tax, Transfer Pricing) for all GCC Countries in the Law Section of GCC FinTax.
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