31 July 2019
MUSCAT (WAF)-Oman is committed to the GCC unified agreement to implement value-added tax (VAT), and working on completing the legislative procedures required, Oman’s Ministry of Finance said in a statement published by Oman News Agency (ONA) today.
“The Secretary General for Taxation (SGT) is currently completing the administrative and technical requirements in preparation for applying this tax once it is approved”, ONA reported quoting the Ministry’s statement.
The statement comes after a news report by Reuters on Omani plans to delay the implementation of VAT to 2021. The report sourced a bond prospectus saying that VAT “is expected to be implemented in 2021”. Oman didn’t announce officially a date for VAT.
Oman’s legislative cycle includes the government’s revision of the draft-law –represented by the Council of Ministers-, which then refers it the Omani Parliament.
The Parliament of Oman consists of al-Shura Council –the elected branch-, and the State Council –the appointed branch-. Each branch, separately and respectively, reviews the draft-laws and offer comments and suggestions, before the final draft reaches the Sultan for final approval in the form of a Royal Decree.
Both the branches are in a break, and usually reconvene in the fourth quarter of the year.
The Ministry added in its statement that Oman will continue implementing financial procedures “in the aspects of revenue and public expenditure to achieve fiscal balance”.