Carbonated drinks could cost 225 baisas in stores

Muscat: The application of the new excise tax, which will be implemented on June 15, could increase the cost of carbonated drinks from 150 baisas to 225 baisas, according to the Oman Chamber of Commerce and Industry (OCCI).

On Saturday, a 100 per cent excise tax will be introduced on tobacco products, energy drinks, alcohol and pork, while a 50 per cent tax will be applied on carbonated drinks. The new tax is expected to bring in up to OMR100 million a year to help balance Oman’s books.

In a presentation for business owners at the Oman Chamber of Commerce and Industry recently, heads of the chamber informed business owners of how the tax would be implemented on goods.

The heads of the chamber informed business owners: "For example, if the cost of a can of a carbonated drink is 150 baisas, then as per the tax paid to the government, the can would then have 50 per cent of 150 increased to it, and then would cost 225 baisas going forward."

This, the heads of the chamber added, depended also on when the tax is implemented and where it is sold. If it is sold at a restaraunt for a higher amount, then the increase in prices is likely to reflect the tax appropriately.

According to the chiefs, the tax could be paid at the point of entry in Oman. However, if it is placed in tax-free customs storage, it could be taxed when it leaves the supplier to the distributor, or it can also be paid at the retailer level.

In all cases, the tax will get passed along the chain of buyers and sellers until it is paid for by consumers in Oman.