Muscat: Oman’s government has decided to reduce the recently introduced sin tax on alcoholic beverages from 100 per cent to 50 per cent, a spokesman of the Ministry of Finance said on Wednesday.
The decision came only four days after the new law was implemented. As per the ministry official, this is to study its effects on the tourism industry.
He added that this decision was taken to control alcohol smuggling and tax avoidance.
Sin tax is expected to generate RO100-120mn in its first year (2019).
The ministry also stated that the decrease in alcohol tax won’t hugely affect the government’s income as most of the taxation money comes from tobacco and soft drinks