Gulf country imposes 50% tax on sweetened drinks from October

A Gulf country has decided to impose a tax of 50% on all sugary drinks and juices. The new tax of 50% will be come to effect from October 1.

Oman has decided to impose excise tax on all drinks. Oman is the third Gulf country after Saudi Arabia and UAE to impose an excise tax.

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Last June, Oman Tax Authority issued a list of taxable products including juices, fruit drinks, energy or sport drinks, canned coffee and tea products.

“Beverages containing added sugar or sweeteners that are ready-to-drink, concentrates, gels, powders, extracts, or any form that can be converted into sugar sweetened beverage, will be subject to a 50 per cent excise tax from October 1, 2020,” read a decision issued by the Authority.

The excise tax also referred to as selective tax was earlier introduced on June 15, 2019 and covered five products — carbonated drinks, energy drinks, tobacco products, pork and alcohol.

The excluded items include some products such as 100 per cent natural fruit and vegetable juices, milk, and other dairy products that contain at least 75 per cent of milk, nutritional supplements, and beverages intended for special dietary and medical use.