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Oman slaps tax on luxury items, harmful goods

Move comes ahead of decision to implement VAT by the middle of next year

Image Credit: Istockphoto
Gulf News

Muscat: Oman has issued a decision to levy taxes on luxury items as well as goods which are harmful to public health and environment, according to Oman's latest budget figures published recently.

The decision comes ahead of Oman’s implementation of Value Added Tax on goods and services set for the middle of next year.

Oman has followed in the footsteps of other Gulf states, like Saudi Arabia, the UAE and Bahrain which started levying 100 per cent tax on tobacco and alcohol, and 50 per cent on energy drinks starting from January this year.

In November, 2016, Oman announced it would begin to implement VAT by 2018 in a move to diversify its revenues amid the decline in oil prices.

The selective tax includes those harmful to health such as alcohol, tobacco, ham and fizzy and energy drinks

The estimated income from VAT, Oman could add between $520 million (200 million Omani riyals) and $779 million (300 million riyals) every year, according to the Ministry.

The revenue generated will help diversify the country’s economy and provide a new source of income for the government coffers.

In December, Oman’s Ministry of Finance postponed the decision to implementation ofVAT until 2019.

 

 

 

 

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