New Tobacco Tax Rules from October
The decision by the Tax Authority in the Sultanate of Oman, No. 206/2026, effective from October 1, 2026, establishes a standard price for tobacco and its products, aimed at determining the taxable base for the excise tax at 100%. The standard price for 20 cigarettes is set at a minimum of 1 Omani Rial, and for 250 grams of similar products like shisha, it is set at 2.500 Rials, with proportional adjustments applied to other weights. This decision does not mean that the retail price for consumers will become one Rial, but rather provides a reference used to calculate the tax, which is based on the higher of the declared selling price or the standard price. Since the tax on tobacco is imposed at 100%, the tax amount equals the taxable base value, which may lead to increased prices of cigarettes and similar products and could indirectly contribute to reducing tobacco consumption.
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