The Sultanate of Oman is planning to introduce a 5% value-added tax (VAT) in April, following the lead of its neighbouring Gulf Cooperation Council (GCC) member states. It will thus become fourth Gulf state to introduce VAT after UAE, Bahrain and Saudi Arabia.
The Sultan of Oman, Haitham bin Tariq Al-Said, issued a decree on Monday to start imposing a 5% VAT within six months. Oman News Agency said that a law was also issued to amend some provisions of the Criminal Procedures Law, and that the VAT law will be imposed on most goods and services, with some exceptions. Essential food items, medical care, education and financial services will be exempted.
The government said it would have a limited impact on the cost of living.
The tax will be applied 100% on tobacco and its derivatives, energy drinks, alcoholic beverages and pork, while 50% will be applied to soft drinks based on their retail price.
The sultanate intended to impose 5% VAT in 2018, but postponed it until 2020.
The law is part of a broader 2016 agreement between all six GCC states and Saudi Arabia.
Oman, the biggest oil exporter outside OPEC, was among the more vulnerable economies in the six-member GCC, even before falling crude prices and the COVID-19 pandemic impacted it. Its budget deficit as a share of gross domestic product is anticipated to be among the highest in the region, according to the IMF.
Oman held off from introducing VAT so far, despite calls from the International Monetary Fund to speed up its rollout. The sultanate has introduced a series of other reforms, including cuts to fuel and electricity subsidies. It has been “able to remodel itself and re-engineer some of its deals” and has recently introduced a new foreign investment law.
J Lindeberg was started by Johan Lindeberg in 1990s with the aimSeptember 2, 2022 | By RetailME Bureau
Majid Al Futtaim has made significant strides toward environmental, social, and corporateJuly 5, 2022 | By RetailME Bureau
Abu Dhabi based grocery retail chain Lulu Group has partnered with Amazon
UAE-government-led initiative Food Tech Valley – announced in 2021 by His Highness
Abu Dhabi-based supermarket chain Lulu Hypermarket is all set to open in
Plant-based meat brand Beyond Meat’s financial results for the third quarter of
UAE’s fresh produce brand Barakat has launched bio-degradable packaging across its entire
UAE-based agritech start-up Pure Harvest Smart Farms has signed a Memorandum of
Carrefour, owned and operated by Majid Al Futtaim – Retail in the
Grandiose Supermarket, part of Ghassan Aboud Group, has announced expansion plan in
The Valrhona journey began 100 years ago with a cocoa bean. Since
Deliveroo UAE has announced the expansion of its rapid grocery delivery service
The Ministry of Climate Change and Environment (MOCCAE) revealed that the UAE
The UAE retail market is anticipated to grow at a CAGR of
Lulu Group International, Apparel Group, 6thStreet.com, ENOC, Splash, Crocs, Aldo, Babyshop and
GCC retail sales is set to grow at a compound annual growth
UAE-based luxury floral design company Maison Des Fleurs has signed an exclusive
Qatar’s Supreme Committee for Delivery & Legacy (SC) and Coca-Cola Middle East
adidas has announced a partnership with the Saudi Arabian Football Federation (SAFF)
Middle East based luxury retail group Chalhoub Group plans to double staff
The Dubai Festivals and Retail Establishment (DFRE) has unveiled an exciting line-up
UAE’s Bliss Flower Boutique recently opened its first store in Doha at
Dubai-based diversified family-owned business Danube Group soft launched Danube Sports World –
The first edition of the World Corporate Summit (WCS), supported by Dubai’s
Landmark Retail, the retail division of UAE-based conglomerate Landmark Group, has continued