Studies on regulating the tax treatment of
excise tax have been prepared in line with international best practices and have been based on the results of data from the local market.
The FTA asserted that there is no threshold for
excise tax, meaning that any business with activities involving excise goods is required to go ahead and register in the new system, calculate its tax amounts, and refer to the FTA website for information and manuals that outline the required procedures for producers and importers of excise goods, and for excise goods stored in designated zones.
Two years ago, Dutetre signed into law the first package of the tax reform program which raised tobacco
excise tax rate from P31.20 per pack in 2018 to P32.50 per pack between January to June 2018, P35 per pack from July 2018 to December 2019, P37.50 per pack in 2020 and 2021 and P40 per pack in 2022 and 2023 and a four percent annual indexation onwards.
Nasr said diplomatic and consular bodies, as well as international organisations are exempted from
excise tax, including excise goods carried by travelers coming to Qatar, provided that they are "not of commercial nature and are within the permissible limit and goods sold in duty free shops and goods that are intended for consumption on international air and maritime transport."
The Department of Energy expects bulk of the 8,600 service stations nationwide to implement the higher
excise taxes between January 15 and February 1.
Oil companies were told by the Department of Energy on Wednesday not to immediately collect the second round of
excise taxes on petroleum products of P2 per liter on January 1, 2019 since they still have stocks or inventories of 15 to 30 days.
"When raising
excise tax rates, we carefully analyze the situation.
The FTA also clarified that the retail price subject to tax, known as Excise Price, of each taxable item must be the highest of the following two prices: the local market price specified in the Excise Goods Price List (available on the FTA website) - or the designated retail sale price as calculated by the retailer as per the procedure specified in the Taxable Persons Guide for
Excise Tax.
The
Excise Tax and VAT treaties constitute the common framework for the introduction of these taxes in the GCC which is expected to occur by 1st of January 2017 and 1st of January 2018, respectively.
The PATH Act imposes a two-year moratorium on application of the medical device
excise tax. This item discusses some frequently asked questions with respect to the medical device
excise tax and the current state of the law.
Because a health insurer administering the tax cannot deduct the
excise tax amount from its own taxable income, the full amount an insurer will expect to get from an employer for paying the tax may be about 60 percent bigger than the tax payment itself, Holloway warns in the analysis.
