Oman 5% VAT launch early 2021
- Jan 22, 2020 | Richard Asquith
Oman’s Commerce Minister has confirmed that Value Added Tax will not be introduced until at least early 2021.
The postponement had already been disclosed in a July 2019 bond prospectus. It is due to slow economic performance and low consumer sentiment. Oman’s credit rating is now set at ‘junk’ by some of the major credit agencies, and the country’s deficit may reach 10.6% this year. Much of the country’s problems are down to the continuing supressed oil price which is around $60 per barrel.
Despite the delay in introducing a VAT regime, some excise taxes have been implemented in the past twelve months.
In 2018, all six of the Gulf Cooperation Council states agreed to introduce a harmonised 5% VAT regime and customs union. So far, only Saudi Arabia, UAE and Bahrain have proceeded.