Value added tax to be implemented in Oman in 2018, says official

Business Sunday 06/November/2016 13:41 PM
By: Times News Service
Value added tax to be implemented in Oman in 2018, says official

Muscat: A pact on value added tax (VAT) will be signed in the coming days, the secretary general of taxation at Ministry of Finance has said.
“The value added tax agreement will be signed next week or after, but the implementation will start in 2018 as implementation is linked to having a local law in the Sultanate. The draft law has been prepared and will be submitted to the legislative authorities for revision,” Saud bin Nasser Al Shukaili, Secretary General of Taxation, Ministry of Finance, said.
The official said that Oman’s taxation system in general will be amended including the tax rates that will be levied on companies during the coming period.
“A recommendation about this rate has been raised and it will be declared when the necessary legislations are promulgated,” he added.
In response to a question about the value added tax, Al Shukaili said that levying this tax is the outcome of joint efforts between the Sultanate and other Gulf Cooperation Council (GCC) states.
“The tax will be implemented when consensus is reached among the GCC states on the date of starting the implementation,” he added.
He also noted that there will be selective rises on some products harmful to health, such as alcohol, tobacco, ham, fizzy drinks and energy drinks.