MUSCAT: Oman’s Tax Authority has issued Decision No. 206/2026 determining the standard prices used to calculate excise tax on tobacco and tobacco products.
Under the decision, the standard price for a pack of 20 cigarettes must not be less than RO 1. For similar tobacco products, including shisha and ready-to-use tobacco, the standard price must not be less than RO 2.500 per 250 grams.
Where the quantity differs, the minimum standard price will be calculated proportionately. For example, the standard price for 500 grams of ready-to-use tobacco will be RO 5.
The standard price serves as a reference value for calculating excise tax. The retail price will be compared with the designated standard price, and the tax will be calculated using whichever value is higher.
The decision will take effect on October 1, 2026.
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