What is Excise Tax?

Excise Tax represents an investment in Qatar’s future by building a healthier society.

Excise Tax is a consumption tax that applies to specific goods generally deemed harmful to human health, with the aim of reducing consumption.

Excise Tax revenues will be invested in improving public services including hospitals, infrastructure, and education. This reform will contribute to the achievement of The State of Qatar’s social policy goals as part of the 2030 National Vision and help secure a sustainable future for The State of Qatar and its generations to come.

The following goods are subject to Excise Tax:

  • Carbonated drinks (non-flavored aerated water excluded) – 50% tax rate
  • Energy drinks – 100% tax rate
  • Tobacco products – 100% tax rate
  • Special goods – 100% tax rate

As a consumption tax, Excise Tax is ultimately borne by the final consumers, but collected earlier in the supply chain by taxable persons (importers, producers or tax warehouse keepers). Excise tax is triggered once the excise goods are released for consumption. This illustration demonstrates how Excise Tax works throughout a supply chain:

Click on the image to enlarge

We encourage you to view our FAQs section to have further details on the tax mechanism and gain a better understanding of the Excise Tax mechanism.