Excise Tax in Oman

On 28 June 2020, the OTA by way of Ministerial Decision 34/2020 also expanded the scope of Excise Tax to include ‘sweetened drinks’. This category is subject to 50% Excise Tax effective from 1 October 2020.

• Sweetened drinks are defined as any drinks that contain sugar, or any of its derivatives or any other sweeteners
• Sweetened drinks shall include concentrates, powders, gels, or any extracts that can be converted into sweetened drinks
  
• Sweetened drinks to include juices, athletic drinks, powders and artificially flavoured concentrates that are used to prepare drinks
• Fruit drinks, fruit juices and nectars, barley drinks, prepared and canned coffee and tea drinks
  
  

Separately, on 19 July 2020, the OTA published Executive Regulations, which provide guidance on the Excise Tax law and also addresses areas like registration, compliances, tax warehouse, levy, exemption, and suspension of Excise Tax, etc...

Deloitte has created a guide to help you better understand the recent expansion of Exice Tax.