The anticipated Oman Excise Tax Law has been issued by His Majesty Sultan Qaboos bin Said via Royal Decree 23/2019 on 13 March 2019. The tax will take effect from 90 days of the official publication of the Law. Publication of the Excise Tax Executive Regulations (ER’s) is expected to be released within 6 months of the effective date of the law.
The introduction of Excise Tax in Oman follows the recent implementation of the tax in neighbouring Gulf Cooperation Countries (GCC), including UAE, KSA, Bahrain and Qatar.
The Oman Excise Tax (or ‘selective’ tax) law will apply to products deemed harmful to health or the environment, and is expected to include the following products:
The tax is expected to apply to importers, ‘stockpilers’ and local producers of the relevant excise goods.
The introduction of Excise Tax brings a significant change for all businesses that import, manufacture or trade in Excise goods in Oman.
Businesses should monitor further Excise Tax developments including any additional requirements that may arise once the Excise Tax Executive Regulations and other guidelines are published. Businesses are encouraged to assess the compliance requirements of the new tax regime and assess the impact on pricing through their supply chains. Businesses will also need to ensure compliance with likely transitional rules. Further detailed analysis on the content of the Excise Tax Law will be provided as soon as it is made available.
Omar Al Sharif
Oman Country Senior Partner, PwC Middle East
Tel: +968 2455 9118
Indirect Tax Leader, PwC Middle East
Tel: +971 (0) 4 304 3744
Tax and Legal Services Partner, PwC Middle East
Tel: +968 2455 8154
Indirect Tax Director, PwC Middle East
Tel: +968 2455 9208
Tax Director, PwC Middle East
Tel: +968 2455 8180
Partner, Middle East Customs & International Trade, PwC Middle East
Tel: +971 (0) 4 304 3936
Indirect Tax Manager, PwC Middle East
Tel: +968 2455 9211