Understanding Goods Subject to Excise Tax and Their Rates in Qatar

CABINET DECISION NO. (5) OF 2019

ISSUING THE EXECUTIVE REGULATIONS OF LAW NO. (25) OF 2018

In Qatar, excise tax plays a crucial role in regulating the consumption of certain goods that are deemed harmful to health or the environment. The tax is imposed on locally produced and imported goods as outlined by the law, with specific provisions detailing the types of goods affected and the applicable tax rates. Here’s an overview of the key articles governing excise tax in Qatar.

Article 2: Goods Subject to Excise Tax and Their Rates

Excise tax is imposed on a variety of goods, with the rates clearly defined based on the nature of the goods. The law specifies the following categories:

• Tobacco and its derivatives: Taxed at a rate of 100%.
• Carbonated drinks: Taxed at a rate of 50%.
• Energy drinks: Taxed at a rate of 100%.
• Goods of a special nature: Taxed at a rate of 100%.

A comprehensive schedule listing the subcategories of excise goods, along with their harmonized system codes, is attached to the law. This schedule also specifies the effective date for the tax application on each type of good. Additionally, the Cabinet may issue decisions to update and refine this list to reflect changes in the market or policy.

Article 3: Excise Tax Due Upon Release for Consumption

Excise tax becomes due when excise goods are released for consumption. This can occur under several circumstances, which include:

1. Production of excise goods outside the suspended tax status.
2. Release of excise goods from any suspended tax status.
3. Possession of excise goods outside any suspended tax status without the due tax being paid within the state.
4. Importation of excise goods, unless they remain under suspended tax status.
5. Loss or damage of excise goods while under suspended tax status, unless the licensee proves that the loss or damage was due to reasons beyond their control, according to the executive regulations of the law.

These provisions ensure that excise goods are properly accounted for and taxed when they enter the market for consumption.

Article 4: Determining the Value of Excise Goods Subject to Tax

The value on which the excise tax is applied is determined based on the retail sale price of the excise goods. This price is declared by the producer or importer. Alternatively, a standard price list issued by the Minister may be used, depending on which value is higher. This mechanism ensures that the tax is calculated fairly, reflecting either the actual market price or a regulated price set by the authorities.

Conclusion

The excise tax regime in Qatar is designed to regulate and discourage the consumption of harmful goods, such as tobacco, carbonated drinks, and energy drinks. By setting clear tax rates and defining when tax obligations arise, Qatar ensures that producers, importers, and consumers are aligned with the law. The provisions under Articles 2, 3, and 4 provide a structured framework for the taxation of excise goods, contributing to public health goals and environmental protection.

As the law evolves, businesses and consumers should stay informed about any updates to the list of excise goods and the applicable tax rates, ensuring compliance and contributing to the nation’s broader policy objectives.

Summary

In Qatar, excise tax is imposed on certain goods such as tobacco, carbonated drinks, energy drinks, and special goods, with rates defined in the law. The tax is due when these goods are released for consumption, which includes production, importation, or possession outside suspended tax status. The value of these goods for tax purposes is determined by the declared retail price or a standard price list issued by the Minister. The law aims to regulate harmful goods, ensuring proper tax collection and contributing to public health and environmental objectives.

Disclaimer: The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for their interpretation and actions based on this information, at their own risk. 

For understanding more about Corporate Tax, VAT, Excise Tax, Financial Services, Advisory Services,reach out to us on :  contact@acme-group.me | +971 52 740 1169