Excisable goods sans digital tax stamps seized in Oman

MUSCAT, FEB 25

An inspection of outlets by officials of Oman’s Tax Authority has yielded a haul of goods that failed to feature Digital Tax Stamps that must be affixed to all products sold in the Sultanate of Oman that are subject to Excise Tax.

The Tax Authority said in a recent post that the haul included cigarette packs and tobacco seized during inspections of dozens of outlets in Dhofar Governorate.

“Tax inspectors at the Tax Authority conducted field inspections at various cigarettes and tobacco selling stores in different locations in Dhofar to ensure the trade of products and goods bearing tax stamps. The inspection came as part of the digital tax stamp control campaign to enhance tax awareness and tax compliance of taxpayers. Nearly 150 different locations were examined, and goods without digital tax stamps were confiscated,” it noted in its post.

Under laws that came into force in mid-2019, Oman began levying an excise tax ranging from 50 to 100 per cent on a range of merchandise, notably cigarettes and tobacco products, alcohols and spirits, and carbonated and energy drinks, among other products. The list of excisable goods was broadened in October 2020 to include a wide range of sugar-sweetened drinks, canned juices and other ready-to-drink beverages.

Tamper-proof digital stamps affixed to excisable products ensure that the goods are legitimately imported, stored and marketed in the country. In the process, any trade in counterfeits or smuggled goods is easy to detect, while the excise tax liable to be paid on all such goods is fully recovered by tax authorities.

The affixing of digital stamps is currently mandatory for cigarette products, tobacco products and their derivatives, among other excisable goods.

Manufacturers and importers of excise products who do not comply with the Digital Tax Stamps scheme are liable to various penalty provisions prescribed under the Oman Excise Tax Executive Regulations (administrative penalty of RO 500 to RO 5,000).

“The Tax Authority calls upon all companies to adhere to the guidelines, terms, and conditions applied, and that importers and traders should ensure that all tobacco goods and cigarettes are labeled with tax stamps while trading,” the Authority added in its post.