GTA hosts virtual workshop on excise tax obligations

The General Tax Authority (GTA) organised a virtual workshop titled “Companies’ Obligations under Excise Tax,” with active participation from over 164 attendees, including business owners, company representatives, and tax experts.

The awareness-raising workshop tackled various aspects of excise tax, specifically the definition of this tax, taxpayers’ responsibilities to the GTA, registration procedures for products subject to excise tax, insights into the Digital Tax Stamp System, guidelines for calculating the tax year and accurately declaring retail prices.

The workshop provided attendees with an overview of taxpayer responsibilities regarding excise tax, utilizing illustrative examples to explain retail price calculations. Emphasis was placed upon the importance of timely tax return submission and settlement of due tax liabilities.

Additionally, it highlighted the obligation of suppliers to adhere to declared prices, in accordance with Law No. (25) of 2018 on Excise Tax, to avoid incurring potential financial penalties.

The event commenced with an informative presentation on excise tax, confirming that it is an indirect tax levied on specific goods considered detrimental to human health or the environment to curtail the consumption of such goods while generating government revenue to fund essential public services.

During the workshop, GTA Director of Consumption Taxes Department Ali Khalid Al Khalifa explained that companies are subject to an excise tax rate of 50 percent on soft drinks and 100 percent on tobacco products and energy drinks.

Al Khalifa added that the GTA implemented the Digital Tax Stamp System (Tax Seals) in 2022 for products subject to excise tax. The system involves affixing a mark to the goods, enabling comprehensive monitoring and tracking of their movement. The primary objectives include verifying the origin of the goods and ensuring that they are traded in accordance with legal regulations.