The Oman Tax Authority has announced new timelines for the phased implementation of its Digital Tax Stamps project – an initiative designed to help regulate the import, trade and sale of excisable products, as well as to optimise the collection of excise tax on these goods.

The Digital Tax Stamps project is being implemented in phases over a five-year period, starting with cigarette and tobacco products. From June 30, 2022, importers and local manufacturers of excisable products require the original manufacturers to affix Digital Tax Stamps as a form of digital tagging onto the tobacco packaging.

From 14 October 2022 cigarettes and tobacco products without Digital Tax Stamps will not be allowed to enter the country. From 1 February 2023, any tobacco products without a digital tax stamp will be barred from import, distribution or sale within the country. The Oman Tax Authority will expand coverage in phases to include the full range of excisable products.

The digital tagging project involves the development of a sophisticated platform, using digital stamps and tracking and authentication tools that can distinguish between illicit goods and genuine products. By tracking and verifying excisable goods imported and sold in the country, the Oman Tax Authority can optimise the amount of revenue collected from excisable goods.

The use of tax stamps and digital tracking tools is in line with the guidelines set out by the World Health Organisation’s (WHO) Framework Convention for Tobacco Control (FCTC). The digital tax stamps are a tool in combatting the illegal import of counterfeit cigarettes, tobacco products and other excisable goods. This protects excise tax revenues and protects consumers from potential health consequences from illicit goods.

Excise taxes in Oman range from 50% to 100% on cigarettes and tobacco products, alcohol, pork products and a wide range of sugar-sweetened drinks, canned juices and other ready-to-drink beverages.