The imposition of the new excise tax on certain products in Qatar received mixed reaction from the public, especially as it comes following the holiday season. How well do we know this new law?
Called the ‘Excise Tax Law’ (number 25 of 2018) and under implementation by the newly-established General Tax Authority (GTA), the new tax law is designed to regulate consumption of ‘health-damaging’ goods, with a 100% tax on tobacco and alcohol products, energy drinks and special purpose goods, and a 50% tax on carbonated drinks.
The Excise Tax law came into force on 1 January, 2019. According to a statement from GTA, the Excise Tax Law is designed to help build a healthier society by discouraging the consumption of harmful goods. The new taxation system was also designed to lay the foundation for a better economic future that is strong and sustainable, in support of the goals of Qatar National Vision 2030.
GTA, mainly responsible for implementation of the new law, has been established as a separate entity under the supervision of the Ministry of Finance. Its mandate includes:
- The implementation of all tax laws and setting up all related bylaws, procedures and instructions.
- Reviewing and assessing tax return forms submitted by all establishments and the collection of taxes from subject entities.
- Representing the State of Qatar in relevant international and regional organisations as well as at international conferences and events.
- Signing agreements with other countries regarding the prevention of double taxation to encourage economic cooperation and joint investments.
For more information about the new excise tax, visit mof.gov.qa.