26 September 2018
Muscat (WAF): Oman’s Ministry of Finance is aiming to impose Value Added Tax (VAT) to the country’s economy mix by September 2019, Suleiman al-Adi, Director General of Survey and Tax Agreements, Ministry of Finance said in panel session held at Oman Chamber of Commerce and Industry last night.
“it’s still a proposal. And will be imposed after we complete studying the impact and all aspects of the new tax”, al-Adi said.
Dr Saleh bin Said Masan, head of the Economic and Financial Committee at elected branch of Oman Parliament, (al-Shura Council) also took part in the panel discussion opposing the government proposal to implement VAT during current economic situation. “VAT is not a fair tax. It treats high-income and low-income segments of the society equally, and imposing it now will cause the middle class to shrink”, he said.
Masan added that VAT shouldn’t be implemented as a source of income to the state. He said that according to IMF’s predictions, the expected returns from VAT will only represent 1.5-3% of Oman’s nonoil Gross Domestic Products (GDP), and will amount to RO300mn.
Oman and other Gulf Countries agreed to implement VAT, but so far only KSA and the UAE took the step. Kuwait parliament said in May that the country will not implement Value-Added Tax before 2021. While Oman and Bahrain are still expected to implement it once the regulatory framework and companies are ready, with no fixed date or year yet.