Oman: VAT to add RO300mn in revenue this year
Published 03 Jan,2021 via Muscat Daily - The implementation of a 5 per cent value-added tax (VAT) in Oman from April 2021 is expected to generate additional revenue of RO300mn for the sultanate this year, according to the budget statement released by the Ministry of Finance.
The value-added tax is an indirect tax on consumption so that the final consumers will ultimately bear the cost of VAT. The tax will be imposed on goods and services in Oman starting from April 2021, with exception of the education and health sectors and some basic commodities.
‘The financial impact of measures and initiatives taken under the Medium Term Fiscal Plan (2020-2024) has been estimated at RO3.5bn in 2021, with an increase in revenue by RO565mn resulting from VAT which is expected to generate RO300mn, government investments to yield up to RO195mn, excise tax of RO20mn, and taxes at RO50mn,’ the Ministry of Finance’s statement said.
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