Oman charges flat 5pc VAT on range of services, items starting today

Published in arynews.tv on April 16, 2021

MUSCAT: Oman has now become the fourth Gulf state to implement Value Added Tax (VAT), with a flat 5 per cent being imposed on a range of goods and services from Friday, April 16.

The other economies to have done so in recent times are the UAE, Saudi Arabia – which last year raised its VAT rate to 15 pc from 5 pc – and Bahrain.

Oman expects 400 million riyals in additional revenues for the state exchequer via the tax, equivalent to 1.5 pc of the country’s GDP.

The receipts will come in handy as the Gulf state tackles budget deficits that have widened as a result of the pandemic hit to the economy.

Oman had in place a six-month transition period before the new tax regime came into effect. But categories such as essential foodstuff will be exempt from the VAT category and will be rated at 0 pc.

UAE has had a VAT regime since January 1, 2018. In the recent past, top Ministry officials have said that there are no plans to raise the VAT rates.

Separately to report today from the Gulf, the Kuwait government has extended the grace period for illegal expatriates by an additional month that was due to expire on Thursday.

The Kuwaiti Interior Minister Thamer Al Ali issued a decree for the extension of a grace period for illegal foreign residents till mid-May.

It read that the illegal expatriates should apply for readjusting their status during the new extension period in order to avoid strict penalties.

Your Comment:

Related Posts

11

Jul
Print Media

Seizing the moment

By Zeba Sathar Published in Dawn on July 11, 2025 THERE has been over a decade of virtual silence from both the federal and provincial governments with regard to our rapidly rising population growth rates. Finally, some prominent public figures are expressing concerns about this issue. The health minister, in his budget speech, claimed that rapid population […]

11

Jul
Print Media

ADB, SBP launch Women Finance Code

Published in The Express Tribune on July 08, 2025 KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has said that the central bank is fully committed to undertaking structural reforms and laying the foundation for sustainable and inclusive economic growth. He was speaking at the launching ceremony of the Women Entrepreneurs Finance Code in Karachi, organised[…]