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The excise tax on certain health-damaging goods such as cigarettes, tobacco products, energy drinks and carbonated beverages that came into effect on January 1 is a real investment in human capital, the General Tax Authority (GTA) has said.
The excise tax is designed to help build a healthier society by discouraging the consumption of harmful goods, the GTA said in a statement.
The excise tax includes a 100 percent tax on tobacco products and energy drinks and a 50 percent tax on carbonated drinks.
The statement said the taxation system also lays the foundation for a better economic future that is strong and sustainable.
The GTA will support the goals of the Qatar National Vision 2030 to ensure the sustained welfare of citizens and residents, and provide a mechanism for Qatar to reduce its dependence on a hydrocarbon-based economy.
The statement said the establishment of GTA is considered one of the means of achieving greater economic stability for the state and maintaining its sustainability, and even increasing it.
The success of the GTA will have a positive impact on the quality of living in the coming decades as it will lead to reducing dependence on the hydrocarbon resources of the state.
The GTA has been established as a separate entity under the supervision of the Ministry of Finance and will be in charge of implementing all tax laws and improving tax compliance.
The law establishing the GTA mandates the authority to implement all tax laws and set up all related bylaws, procedures and instructions and be responsible for their implementation.
It is also responsible for reviewing and assessing tax return forms, collecting taxes from subject entities, representing Qatar in relevant international and regional organisations and at international conferences and events.
It is responsible for tax agreements with other countries to encourage economic cooperation and joint investments.
The GTA will regulate the work of the taxation system through financial instruments that positively influence the level of welfare of citizens and residents alike, as well as improve public services such as healthcare, education, roads and infrastructure.
The taxation system also lays the foundation for a better economic future that is strong and sustainable.
The statement said tax resources are considered the safest, and it is one of the most important pillars of support for the national economy of any country, especially when the tax system deals with the issues of justice and proceeds, and is applied in accordance with the latest regulations and international tax standards.
The Income Tax Law Number 24 of 2018 amends the previous law on corporate income tax and stipulates that the salaries and wages of citizens and residents shall not be subject to any tax and grants exemptions for equity shares listed on a recognised stock exchange, profits of banking deposits and companies working in the agricultural sector and fisheries.
Marine and aerial transportation are also exempted from tax on condition of reciprocity.
The corporate income tax on foreign companies working in Qatar or on the stakes of foreign partners in joint ventures remains at the same level it was, which is 10 percent of the taxable income, the statement added.
The GTA stressed that the income tax law came as part of tax reform process.
The reform process focused on facilitating procedures according to international standards without increasing the price or type of tax, as well as innovative scientific solutions in the areas of information exchange and action, in a manner that allows for the improvement of the climate attractive to investment.
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