The General Tax Authority (GTA) plays a key role in driving Qatar's economic development and achieving the relevant objectives of National Vision 2030, specifically strengthening the national economy, supporting the general budget, diversifying revenues and reducing reliance on hydrocarbon resources.

The General Tax Authority (GTA) is responsible for overseeing the enforcement of tax laws, including Law No. (25) of 2018 on Excise Tax, which came into effect at the beginning of January this year. This law applies to a range of unhealthy products, imposing a 100% tax on tobacco products, energy drinks, and special purpose goods, while a 50% tax is levied on carbonated beverages.

The Excise Tax serves as an instrument for strengthening Qatar's economy and represents a strategic investment in public health. It is designed to effectively reduce the overall consumption of harmful products and promote a sustainable, healthy lifestyle. Additionally, the revenues generated from this tax are utilized to enhance funding for healthcare, education, infrastructure, and other essential initiatives that contribute to the well-being of future generations.

The General Tax Authority (GTA) mandates that all businesses engaged in the import, production, or storage of excise goods submit a one-time transitional tax return. This return must accurately declare all excise goods held in inventory as of the day prior to the effective date of the Excise Tax Law, which is January 1st.

The GTA also clarified that there is no minimum threshold for filing an Excise Tax return. All businesses holding excise goods in inventory are required to submit a transitional tax return no later than January 31st. Furthermore, these businesses must pay any excise tax due within 30 days of submitting the transitional return.

The GTA mandates that businesses engaged in the import or production of goods, as well as those intending to operate an excise tax warehouse, register with the Authority within the specified timeframe. These entities are also required to maintain accurate books and accounting records, file quarterly tax returns, and pay any applicable excise tax on a quarterly basis.

The law provides a 90-day window from its effective date for businesses involved in the import or local production of excise goods to update their tax registration status in compliance with the new regulations.

For businesses commencing activities that require tax registration after the law's effective date, registration is mandatory at least 30 days prior to commencing such activities.

Businesses and enterprises that maintain a stock of excise goods solely for commercial purposes—such as hotels, retail shops, and tobacco stores—and do not engage in importing, producing, or operating an excise tax warehouse are not required to register with the GTA for excise tax purposes. However, these businesses remain liable for a one-time transitional tax on their existing inventory and must submit a transitional tax return.

The commercial establishments and businesses engaged in the production, import, or storage of specific goods are eligible to seek an excise tax warehouse license. This license permits the authorized entity to store or manufacture such goods within a designated location under a tax suspension arrangement.

The licensee is required to settle the excise tax obligations for any excisable goods departing from their tax warehouse on a quarterly basis.

The GTA stated that Law No. (25) of 2018 on Excise Tax establishes penalties for tax non-compliance and tax evasion. These penalties include imprisonment for a term not exceeding one year and fines up to three times the amount of tax owed, or either of these penalties, as outlined in Articles (16) and (18) of the law.