Oman to introduce income tax from 2022 to curb budget deficit

Oman to introduce income tax from 2022 to curb budget deficit

Cash-strapped 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.

The move is part of a broader program to tackle a budget deficit that's ballooned due to low oil prices and the coronavirus pandemic.

Five percent levy will be viewed as 'positive step' by external bodies and credit rating agencies, says PwC Middle East's tax expert Jeanine Daou

By reducing government spending while spurring investments, the plan is projected to bring the budget deficit - estimated to reach nearly 19 percent 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