MUSCAT: Oman’s Tax Authority has issued Decision No. 206/2026 establishing a benchmark pricing mechanism for tobacco and tobacco products to determine the value on which excise tax is calculated.
Under the decision, the benchmark price will be set by the Tax Authority for goods subject to excise tax and will represent the minimum value used as the basis for calculating the levy, depending on the type and quantity of the product.
The mechanism is intended to establish the taxable value by comparing the retail selling price with the benchmark price specified for the product.
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Excise tax will then be calculated on whichever value is higher, ensuring that tobacco products are not taxed on a value below the benchmark established by the authority.
The Tax Authority said the benchmark pricing system will be used to determine the tax base for tobacco and its products in accordance with the provisions of Decision No. 206/2026.
