DUBAI: Oman’s ruler has issued a decree to start levying a five per cent value-added tax in six months’ time, state-run Oman TV said yesterday.
The tax will be on most goods and services, though with some exceptions, according to a video presentation shown on Oman TV.
“The implementation of the #ValueAddedTax came to ensure the sultanate’s financial sustainability, enhance its competitiveness, and reaffirm its commitment to international and regional agreements and improve the business environment,” the government said on Twitter.
“The introduction of VAT is another important and positive sign to the market that Oman is looking to progress with a much needed fiscal reform programme after announcing spending cuts this year,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
VAT will start in April next year, the Omani government said. Exemptions will include basic food commodities, healthcare, education, financial services, home rentals and the supply of crude oil, petroleum products and natural gas.
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