On Wednesday 13 March 2019, His Majesty Sultan Qaboos issued Sultani Decree (no. 23/2019) promulgating the Selective Tax Law (Selective Tax Law). The Selective Tax Law levies tax on selected goods which include: tobacco and its derivatives; energy drinks; carbonated drinks; alcoholic beverages; and pork and its derivative products.

The percentages of tax levied on the relevant goods are:

  • 100% on tobacco and its derivatives;
  • 100% on energy drinks;
  • 50% on other carbonated drinks;
  • 100% on alcoholic beverages; and
  • 100% on pork and its derivatives.

The Selective Tax Law will come into force 90 days from the date of its publication and the Minister Responsible for Financial Affairs is to issue Executive Regulations within a period not exceeding six months from the date the Selective Tax Law comes into force.

The stated aim of the Selective Tax Law is to encourage a healthy lifestyle in the Omani community by imposing tax on commodities that are viewed as harmful to people's health, and is in line with the direction followed by Oman's neighbouring countries in the GCC.

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