logo |

News

    Home   >     Industry    >     Main body

    Oman Joins Gulf Neighbors by Introducing 5% Value-Added Tax

    Abstract:Cash-strapped Oman is planning to introduce a delayed 5% value-added tax in April, following the lead of Gulf neighbors.

      Cash-strapped Oman is planning to introduce a delayed 5% value-added tax in April, following the lead of Gulf neighbors.

      The levy will exempt essential food items, medical care, education and financial services, according to a royal decree detailing it on Monday. It originally had been designed to go into effect in 2018.

      Even before the virus outbreak, Oman was often seen among the more vulnerable economies in the six-nation Gulf Cooperation Council. The double whammy of lower crude prices and Covid-19 this year took an especially heavy toll on the region. The sultanate also followed the footsteps of neighbors this year in offering debt to take advantage of low borrowing costs.

      “We view the long-awaited VAT announcement as essential fiscal reform for Oman to unlock external funding,” said Carla Slim, a Dubai-based economist at Standard Chartered Plc. The bank forecasts the countrys fiscal shortfall to widen to 17% of gross domestic product before recovering next year.

      More from

      {11}

      Unlikely Group of Millionaires Emerges From a Korean Chaebol

      Retail Investors Embrace Risk and the ‘Hive Mind’ in Stock Boom

      Leon Black Says ‘I Deeply Regret’ Involvement With Epstein

      The $120 Billion Idea Behind This Years Nobel Prize in Economics

      {11}

      The sultanates fiscal deficit during the first half of the year widened 25% on a yearly basis, according to preliminary figures from the statistics service.

      Oman‘s bonds strengthened for a ninth day on Monday, with the yield on its security due 2029 falling 6 basis points to 6.5%. The sultanate’s debt has gained 3.6% this month, outperforming all of its Gulf Arab peers, as optimism surrounding the U.S. November election and fiscal stimulus package boosted demand for riskier assets.

      Both Fitch Ratings and Moodys Investors Service have downgraded the sovereign twice in 2020, saying the government will unlikely be able to offset revenue loss.

      Read: Omans First-Half Revenue Down 12.4% on Lower Oil Prices

      {18}

      Back in 2018, the United Arab Emirates and Saudi Arabia, also clobbered by the drop in oil prices by imposing a 5% VAT. Saudi Arabia tripled its tax this year.

      {18}

      “VAT implementation by April 2021 could help support government revenue as we see economic growth returning to 2.5% in 2021,” said Slim.

      — With assistance by Netty Idayu Ismail

      (Updates with chart, Standard Chartered quotes.)

    Latest News

    New Zealand Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    New Zealand Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.