The draft law on Selective Goods Tax was approved during a joint session of Oman's Majlis Ash’shura and the State Council, according to Oman Observer.
The joint session cleared contentious issues and endorsed new tax, which is expected to rake in a revenue of OMR100 million.
The two councils agreed on 38 articles in addition to 18 other articles with slight amendments, while they argued over articles 22, 49 and 57 in addition to two new articles proposed by the State Council.
Commenting on the joint session, Saleh bin Saeed Masan, head of the Economic and Financial Committee, said there were five articles on which there was a disagreement.
Talking about the positive impacts of the law, he said: “They will rationalise patterns for the consumption of certain health-damaging goods, so it will raise the level of public health in Oman and reduce the cost of treatment.”
He expected the consumption of these types of goods to decrease in the first year from 15 per cent to 20pc.
Under the new law, taxes of varying rates, to be borne by consumers, will be imposed on goods that are harmful to public health and environment such as tobacco products, energy drinks and alcohol.