VAT comes into effect in line with economic goals of Oman

VAT comes into effect in line with economic goals of Oman

Muscat: Shopkeepers and business-owners in Oman are confident that the revenue earned from Value Added Tax (VAT) will be used towards expanding the economy and help the country achieve the goals of Vision 2040. VAT came into effect in Oman on Friday, April 16, 2021. A flat tax of five per cent has been levied on a number of goods and services bought by customers. Despite its arrival, shops and restaurants reported brisk business over the weekend. Dr Hesham Magd, the head of the Faculty of Business and Economics at the Modern College of Business and Science, said VAT would help contribute towards Oman's economic diversification through multiple means. "Economic balance will be achieved as this will help industries expand and move towards production," he said. "This helps make the goals and target of Vision 2040 more achievable. VAT will provide a permanent, reliable revenue stream for the government. Many of the GCC countries receive their primary source of income through the export of fossil fuels such as oil and gas, so this provides one of many possible alternative revenue streams." "VAT will help supply the state treasury in meeting its deficit and debt obligations, diversify Oman's income away from