Oman's sultan issues decree to implement 5% VAT

MUSCAT — Oman's sultan has issued a decree to start levying five percent value-added tax (VAT) in six months' time.

A statement posted online by Oman News Agency said: "His Majesty Sultan Haitham Bin Tarik issued two royal decrees, the first of which was to amend some provisions of the Code of Criminal Procedure, and the second decided to issue a value-added tax law.”

The tax will be on most goods and services, though with some exceptions, according to a video presentation shown on Oman TV.

All six Gulf Arab states agreed to introduce 5 percent VAT in 2018. Saudi Arabia, the United Arab Emirates, and Bahrain have already introduced the tax, with Riyadh tripling it this year.

Oman, Kuwait, and Qatar have not yet introduced the tax.

Facing a 2.8 percent economic contraction this year and a government deficit of 16.9 percent of gross domestic product (GDP), according to the International Monetary Fund, Oman has cut public spending to contain the financial leakage caused by lower oil prices and the downturn caused by coronavirus lockdowns. — Agencies