Oman Sultan to rule on VAT after legislature suggests 2022 start

Oman Sultan to rule on VAT after legislature suggests 2022 start

Oman's legislature is proposing to implement a value-added tax after January 2022 as falling oil revenue pressures its finances, following similar moves by Gulf Arab neighbours.

A joint committee of the State Council and Shura Council suggested the time frame and sent a draft law for approval to Sultan Haitham Bin Tariq Al Said.

He took power in January vowing to take unpopular steps to bolster the near $80bn economy that his predecessor had sidestepped.

Oman would become the fourth of the Gulf Cooperation Council's six states to collect VAT, a move agreed by the bloc years ago.

The UAE imposed a 5 per cent VAT in 2018 on most goods and services, while Saudi Arabia tripled its levy to 15 per cent earlier this year.

Bahrain imposed VAT in 2019.