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

15

Apr
CIMRAD, Print Media

Explainer: Why such a massive, sudden rise in remittances

By Aimen Siddiqui Published in The News on April 15, 2025 KARACHI: Pakistan’s record monthly worker remittances in March is a result of both the government’s efforts to control flow of money through legal channels and a stable rupee, say experts. The State Bank of Pakistan (SBP) on Monday released data on the country’s monthly inflows for […]

14

Apr
CIMRAD, Print Media

Remittances hit $4.1bn for March: SBP governor

By Mahira Sarfraz Published in Dawn on April 14, 2025 State Bank Governor Jameel Ahmad on Monday said that remittances were at a record $4.1 billion during the month of March. Remittances from overseas Pakistani workers had soared by nearly 40 per cent year-on-year in February 2025, reaching $3.12bn. Compared to January 2025, remittance inflows increased by[…]