Oman’s Sultan expected to approve VAT to boost economy
Published 03 Sep,2020 via Bloomberg Markets - Oman’s legislature is proposing to implement a value-added tax after January 2022 as falling oil revenue pressures its finances, following similar moves by Gulf Arab neighbors.
A joint committee of the State Council and Shura Council suggested the time frame and sent a draft law for approval to Sultan Haitham Bin Tariq Al Said. He took power in January vowing to take unpopular steps to bolster the near $80 billion economy that his predecessor had sidestepped.
Oman would become the fourth of the Gulf Cooperation Council’s six states to collect VAT, a move agreed by the bloc years ago. The UAE imposed a 5% VAT in 2018 on most goods and services, while Saudi Arabia tripled its levy to 15% earlier this year. Bahrain imposed VAT in 2019. Only Kuwait and Qatar, which is currently boycotted by a four-nation Arab alliance, are yet to announce plans for imposing the tax.
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Zainab Fattah and Turki Al Balushi