Tuesday, 21 Mar 2023
Boon or bane? Oman gears up for sin tax

Boon or bane? Oman gears up for sin tax

The registration for the Excise Tax dubbed generally as the sin tax, is bound to go reside on the set date, confirmed Sulaiman bin Salim al A’adi, director basic of survey and tax agreements and head of the excise tax functioning group at the Secretariat General for Taxation in a statement.

While the tax will have an effect on the sultanate’s residents and organizations alike, it is also getting welcomed by a big group of individuals.

In an on the internet poll performed by Muscat Daily, 53 per cent of individuals agreed that the improved tax on tobacco, power and soft drinks and alcohol will decrease the use of these goods. Many youngsters also really feel that the higher rates will effect their options. “I needed to reduce and cut down on sugary drinks and this taxation comes as free motivation for me,” mentioned Joshua Andrews, a resident of Muscat.

“It’s an obvious blessing as we all know the disadvantages of overconsumption of sugary drinks and the likes,” mentioned Juliet Shibu, a student of Indian School Muscat.

Mohammed al Balushi as well feels it is a good move as it will not just unlock new sources of earnings for the government, but also rein in people’s addiction to such damaging goods. “The consumption of carbonated and energy drinks among the children and youth in Oman is very high. With this tax maybe more people will ask for plain water.”

However, several also really feel that such taxes will not have an effect on the affluent classes as significantly as the reduced earnings groups. “I feel that only folks with higher income will be able to afford these products,” added Juliet.

Soft drinks are a staple of blue-collar workers and the taxation is going to have an effect on them much more, mentioned Keith Watson, an interior designer. “People of middle income and lower income groups will think twice before buying these taxed products to avoid a dent in their savings.”

This can also be an chance to alter habits, mentioned a coffee shop owner in Ruwi. “People will not want to buy a carbonated drink especially when the hike is 50 per cent,” he mentioned adding, “This may be a good time to advocate fresh juices.”

It may well be simpler to give up on sugar addiction but tobacco shoppers have a various story. “It is going to be an expensive habit,” mentioned Salim, a media skilled and a chain smoker.

Alcohol, which will also be taxed at 100 per cent, is going to be an pricey affair for shoppers who currently spend a hefty cost at licensed restaurants. “It will be expensive to enjoy a bar experience in Oman,” mentioned an American residing in Oman.

“Tourists will have a hard time too if they have to pay a higher price for a holiday drink,” she added. In Europe about 11 nations such as the UK, Ireland, France and Portugal imposed the ‘sugar or health tax’ final year onwards.

The trend gained momentum in the Middle East in the previous year with Saudi Arabia and the UAE slapping excise tax inside a variety of 50 to 100 per cent on cigarettes, tobacco, power drinks and carbonated drinks.

Information Source: Muscat Daily

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