Oman expected to add $779m in revenue from VAT this year

The implementation of a 5 per cent value-added tax in Oman this year is seen bringing in OMR300m ($779m), the Oman News Agency reported Saturday, citing the Gulf nation’s finance minister.

Oman’s 2021 budget, announced Friday, forecasts a 14 per cent drop in spending and a 19 per cent decline in revenue after finances were ravaged by lower crude prices and the coronavirus pandemic.

The country last year announced it would impose a 5 per cent VAT in an effort to bolster the economy and curb its widening budget deficit.

• The total financial boost from the measures taken in the 2021 budget plan is estimated at OMR3.5bn.
• Of that inflow, proceeds from VAT and excise tax will add about OMR413m this year, while revenue collected from income tax on companies is seen at OMR400m. Remaining revenue will amount to about OMR1.4bn.