MUSCAT:Oman’s new ‘sin tax’ will come into effect from Saturday, June 15, following a royal decree issued by Sultan Qaboos bin Said to tax 100 per cent on tobacco, alcohol, pork and energy drinks, and 50 per cent on carbonated drinks.

Saudi Arabia was the first to impose the tax in June 2017, followed by the UAE and Bahrain later that same year, covering cigarettes and sugary drinks. Qatar implemented its tax in January, adding pork and alcohol. Kuwait has yet to implement any selective tax, but its excise tax law draft said the covered goods would be tobacco, and energy and soft drinks.

In a statement reported by Oman’s national news agency ONA earlier, Sulaiman bin Salim Al Aadi, director-general of survey and tax agreements, said the electronic system is ready to be rolled out from June 15. There will then be a 90-day grace period to allow people and companies to register for the tax, which will come into effect once the grace period ends.

“The working group has completed these requirements and is completing the remaining procedures required for automated link with the relevant government agencies to activate the systems in a timely manner according to the target timelines,” Al Aadi added.

Oman’s Government Communication Centre argued that the tax increases on cigarettes and alcohol will help combat health risks associated with the vices.

“Selective taxation seeks to achieve a set of objectives, the most important of which is the promotion of healthy lifestyles, the treatment of negative phenomena… and an additional resource for public finances through the possibility of the tax revenues collected to promote health and social services,” is said in a statement.