Income tax on the cards for high income earners in Oman: IMF

SourceKhaleej Times
SectorEconomy
CountryOman

International Monetary Fund (IMF) has reiterated that Oman is planning to introduce income tax on high income earners as part of its medium-term fiscal balance plan. The Fund welcomed the fiscal balance plan and said introducing value-added tax (VAT) in 2021, a personal income tax on high-income earners being developed, and full-year impact of the expansion of the excise tax base in 2020 are key to reinforcing fiscal sustainability and alleviate financial pressure. In addition, containing the wage bill via civil service reforms; targeting energy subsidies to the most vulnerable groups; streamlining capital expenditure; and broad-based improvements in expenditure efficiency are also key to reforms. When introduced, Oman will be the first country in the GCC to levy income tax in the region. It is expected that Oman can introduce income tax in 2022. Oman aims to bring fiscal deficit down to 1.7 per cent of gross domestic product by 2024, from a preliminary deficit of 15.8 per cent this year. “These policies would also help mitigate structural weaknesses in public finances, notably heavy reliance on hydrocarbon revenue and rigidities in expenditure. Given the impact of fiscal consolidation on economic activity and ...read more...