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Robert Anderson

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Abu Dhabi eyes first bond issue in seven years

GCC growth forecasts cut as austerity bites

Airline

Airlines hit by corporate travel cuts in Oman

Middle East M&A deal value declines in Q1

​Amanat acquires stake in UAE education company

Dubai Financial Market receives land for new HQ

Dubai residential rates down but showing improvement

Saudi expects oil freeze to include Iran

Obstacles on the line for GCC rail projects

Five minutes with.. Centric founder and CEO Usman Khalid

Abu Dhabi developer reveals plans for UAE's largest aquarium

Abu Dhabi developer reveals plans for UAE’s largest aquarium

Weekly ticket on $23bn Riyadh Metro to cost just $6.67

Weekly ticket on $23bn Riyadh Metro to cost just $6.67

Kuwait signs $2.9bn deal for LNG facility

Kuwait signs $2.9bn deal for LNG facility

Amnesty report says Qatar 2022 world cup workers still suffering abuse

Amnesty report says Qatar 2022 world cup workers still suffering abuse

Oman could become the first country in the Gulf Cooperation Council to introduce value added tax as it looks to raise revenues, according to reports. Oman Daily Observer cites an official familiar with the matter as saying the “final touches” are being made to the country’s draft law relating to VAT. “It is only a matter of timing,” he said, without specifying the tax rate. "There will be no exemptions, and all consumers will pay the VAT upon its implementation," he said, adding, "key sectors, sectors such as health, education and social services may not be included in the new tax net". The source said around 94 food items would also be exempt and the country expected to raise OMR 300m ($779m) each year from the levy for state coffers. However, he ruled out any plans to introduce income tax in the country, according to the publication. A GCC-wide agreement to implement a VAT rate of 5 per cent is in the works with the UAE already confirming its plans. Last month, the emirates said it would implement the levy from January 1 2018. Under the agreement, UAE minister of state for financial affairs Obaid Humaid Al Tayer said other countries in the region would have until January 1 2019 to follow suit. He said at least 100 foot items, bicycles, healthcare and education would be exempt from VAT, which is expected to raise Dhs 12bn ($3.2bn) for the country in its first year. In a report this month, consultancy firm EY’s MENA indirect tax leader Finbarr Sexton said VAT would have a “broad impact” on businesses in the region. “It will diversify government revenue sources and reduce reliance on oil revenues to finance government expenditures,” he said. “The additional revenues collected are likely to fund programmes for the development of job opportunities for nationals and improve education and healthcare in the GCC.” But he warned that there would be severe penalties for non-compliance. “All businesses must undertake a review of their current contracts to determine if VAT has been appropriately addressed,” he said. The implementation of VAT in the GCC is being driven by a prolonged decline in Brent crude prices from a $115-per-barrel peak in mid-2014 to around $40 this month. GCC countries are expected to post average fiscal deficits of 16 per cent this year, with a $275bn regional shortfall, according to the International Monetary Fund. Related articles VAT could become additional cost for GCC businesses Industry GCC Rail Completion Date Could Be Pushed To 2020 - UAE Minister Industry UAE Launches Strategy To Become Most Innovative Country In Seven Years Industry Newsletter Subscribe to get a Gulf Business update each day. By Robert Anderson Email Robert Latest More senior executives at Abu Dhabi bank FGB depart Emirates would buy more A380s even if new version shelved Saudi Aramco prepares for global expansion as IPO looms UAE workers say CEOs accountable for data breaches

Oman could be first to launch VAT in GCC

Profit at Abu Dhabi's Mubadala climbs 12.4%

Profit at Abu Dhabi’s Mubadala climbs 12.4%

More than half of Gulf-listed firms fell short of forecasts in Q4 2015

More than half of Gulf-listed firms fell short of forecasts in Q4 2015

Kuwait arrests 47,000 expats in three months as crackdown continues

Kuwait arrests 47,000 expats in three months as crackdown continues

Iran will consider oil freeze when its reaches 4 million bpd - report

Iran will consider oil freeze when its reaches 4 million bpd – report

Work begins on installation of world's largest umbrella in Mecca

Work begins on installation of world’s largest umbrella in Mecca

Iran will consider oil freeze when its reaches 4 million bpd - report

Iran will consider oil freeze when its reaches 4 million bpd – report

More than half of Gulf-listed firms fell short of forecasts in Q4 2015

Five minutes with... Elegant Resorts Middle East GM Anthony Challinor-Cole

Five minutes with… Elegant Resorts Middle East GM Anthony Challinor-Cole

GCC heading for hotel supply glut

GCC heading for hotel supply glut

Mecca Chamber chairman warns two-day weekend could cost Saudi $26bn

Riyadh Metro will be completed as scheduled

UAE banks announce plans to help troubled SMEs

Oman’s Salalah Port signs MoUs with two Iranian terminals

Emirates unveils new business class seat

Saudi mobile industry required to employ 100% Saudis in six months