Oman plans to introduce wealth tax in 2022

Oman plans to introduce wealth tax in 2022

Oman plans to take a step unheard of in the Gulf region: It's going to start taxing the income of wealthy individuals beginning in 2022, as part of a broader programme to tackle a budget deficit that's ballooned due to low oil prices and the coronavirus pandemic.

By reducing government spending while spurring investments, the plan is projected to bring the budget deficit - estimated to reach nearly 19% of gross domestic product in 2020 by the International Monetary Fund - to 1.7 percent by 2024, the Ministry of Finance said in an emailed statement. Revenue from the income tax will be used to fund social programmes.

The tax would apply to high-income individuals, but the plan - whose implementation is still currently being studied - doesn't specify income brackets.