Oman's Tax Authority has announced Decision No. 206/2026 to set the benchmark prices for evaluating the excise tax on tobacco and its derivatives. Under this new regulation, a 20-cigarette pack is assigned a minimum standard price of RO 1. Additionally, alternative tobacco items such as shisha and ready-to-use options are subject to a minimum standard price of RO 2.500 for every 250 grams.
According to the Tax Authority, these baseline prices will scale proportionally with different product weights. The established standard price functions as a benchmark, where the excise tax is calculated based on either the retail price or the designated standard price, utilizing whichever is higher. This regulatory decision is scheduled to become active on October 1, 2026.
