Cigarette prices to double from April

By Kabeer Yousuf — MUSCAT: March 18 - Come April, prices of cigarettes will almost double across board as Oman is to impose selective tax as part of revitalising non-oil revenues, in concurrence with other GCC countries, it is learnt. Accordingly, smokers will have to shell out few more baisas for their favourite brands, lest seriously mull over stubbing the final butt for monetary sake if not for health reasons. “We were advised that prices of premium brands of cigarettes will be higher as a new tax on certain commodities such as tobacco, alcohol and others is currently under way. The rise is supposed to be almost double for certain brands,” a representative of a leading cigarette agency said.

Last year too, prices of most of the brands had shot up by 100 to 150 baisas, as is experienced in most of the shops which sell cigarettes. Accordingly, any cigarette pack sold at 700 baisas was sold at 900 baisas, while others too saw an increase of 200 baisas. The measures as per the decisions issued by government units concerned are expected to improve and raise the contribution of non-oil revenues such as amending Income Tax Law that is expected to be issued this year. The implications of such amendment are, therefore, not incorporated in the budget. Besides introducing selective tax on luxury commodities including tobacco, alcohol and others, the Sultanate has also announced amending the fee for licences to bring foreign workers, amending some fee for civil services provided by the Royal Oman Police (ROP), limiting tax exemptions granted for companies and establishments, enhancing tax collection efficiency, and activating monitoring and follow-up measures, amending rules and regulations pertaining to exemptions of customs duties, implementing the revised tariffs for large consumers of electricity for commercial, industrial and government use, and amending the regulations of lands allocation such as lands of commercial, tourism, industrial and agricultural use.

Beside the measures to help non-oil sources of revenue, the government has been acting to cut excessive use of tobacco and other allied products in view of public health.

The Sultanate has imposed taxes and other measures such as banning smoking in public and near schools and other educational institutions and restricting the sale cigarettes to those below the age of 18.

A recent study conducted by the Ministry of Education and Ministry of Health on tobacco use among schoolchildren and students has proposed various measures to tackle the menace of smoking among the youth.

Accordingly, pictorial warnings on tobacco products have been introduced, according to a source at the Ministry of Health.

Accordingly, the ministry has proposed to rise in taxes on cigarettes and other tobacco products which was later sent for detailed studies by government agencies concerned, along with the GCC secretariat.

Oman has no tobacco products manufacturing company and it imports most of the brands. Along with this, illegal trafficking and sale of banned cigarette brands are also rampant in most of the small shops.

The Muscat Municipality and Public Authority for Consumer Protection along with the ROP conduct raids on suspected shops and confiscate huge cache of such products every now and then.