MUSCAT: The government’s decision to slash the excise tax for alcohol from 100 per cent to 50 per cent was taken after it received a report from the General Secretariat of Taxation, according to an official at the Ministry of Finance.
Oman on Wednesday decided to reduce the tax on alcoholic beverages, days after it first imposed sin tax on selected items such as tobacco, pork, carbonated and energy drinks.
Speaking to the media, Khalid Al Busaidi, from the Macroeconomic Policy Unit at the Ministry of Finance said the rule to impose 50 per cent tax on alcohol is for a period of six months. “A six-month transitional period for the alcoholic beverage to follow up the impact of some sectors and to reduce smuggling. It can also be extended,” he said.
“The decision to reduce to tax on alcohol from 100 per cent to 50 per cent was taken on the basis of some of the observations the Ministry received from General Secretariat of Taxation,” he added.
The excise tax was implemented on June 15, in accordance with the Royal Decree No. 23/2019.
The new excise tax is expected to bring in up to OMR100 million a year to help balance Oman’s books.