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Sin tax to be implemented from today

Starting today an excise tax shall be applied to certain goods as stipulated in Royal Decree No. 23/2019 which stated that the tax will be applicable 90 days from the issuance of the law. 

The selective tax or sin tax will mean an 100 per cent excise tax on tobacco products, energy drinks, alcohol and pork, and a 50 per cent tax on carbonated drinks. 

All firms who stockpiled goods which fall under the new sin tax regulations will have just 15 days to declare the stock and pay the tax in full, according to a government notification.

The new tax is expected to bring in up to OMR100 million a year to help balance Oman’s books.

Some suppliers have not made deliveries to outlets prompting fears that stock bought at lower prices would be sold with the 100 per cent increase after today.

 

But the government has issued a statement in that regard saying: “Any company that has a stock of excise goods at the date of the law going into effect must declare the value of its stock and pay the tax for it within 15 days of the tax coming into effect."

This includes retailers, hotels and restaurants or any other commercial merchant with stocks of alcohol, carbonated and energy drinks, and pork products.

Companies that try to dodge the tax could face fines as high as OMR20,000, as well as a three-year jail sentence.

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