Tax hike on alcohol, smokes, coming this year in Oman

Muscat: A 100 per cent tax hike on the cost of cigarettes, alcohol and other “harmful products” will be implemented this year, according to a statement from the Secretariat General of Taxation at the Ministry of Finance.
The ministry said that the tax will include products that are harmful to human health and help reduce healthcare costs incurred by the government in treating those affected.
The products which were agreed on by the Gulf Cooperation Council are tobacco, alcoholic beverages and meat products.
Other items which pose a health risk might also be included in the list.
The Secretariat General of Taxation pointed out that the tax rate will be 200 per cent of the product value according to the GCC agreement. The Sultanate currently implements a 100 per cent tax rate on the cost of tobacco and alcohol.
The Selective Tax comes in light of plans to diversify income and reduce state spending on health treatments.
Another tax which is awaiting a decision at the start of 2018 is the Value Added Tax which is expected to implement a 5 per cent tax.
Head of the Youth and Human Resources Committee at the Shura Council, Mohammad Salem Al Busaidi, said that the implementation of the selective tax on unnecessary and harmful products is understandable and accepted by the community, adding that the nationals' quality of life should not be hindered by smoking and drinking.
He added that the health issues will cost the state large amounts of money for treatment and that the government has the right to keep some of that money and use it to raise awareness about the dangers of the harmful products.
He also said that the government should have the middle and low income families in mind before implementing any other taxes.