Muscat: The Ministry of Finance announced that Oman is considering on plans to introduce a 5 per cent VAT by end of 2018 or early 2019.
“The plans are on. We are working on the modality,” Times of Oman quoted a Ministry of Finance source as saying.
This came after Gulf Cooperation Council (GCC) countries agreed to introduce 5 per cent VAT in 2018.
“GCC countries have already agreed on five per cent rate after negotiations on a rate between three and five per cent, though the decision is yet to receive final approval,” Darwish bin Ismail Al Balushi, Minister Responsible for Financial Affairs, was quoted as saying last week.
Once implemented, Oman will earn an extra OMR300 million every year from VAT.
About 20 food items, healthcare and education are likely to be exempt from VAT.
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