According to the ministry of Finance Mid Term’s report, Oman has laid down a plan for proposing an income tax starting from 2022 which shall target the people with higher earnings.
Why Income tax?
The decline in the oil prices and the pandemics both have caused economic damages to the country which is very much evident from the bloated budget deficit. This new tax would allow overcoming the economic crisis the country is going through.
The tax, which will be levied on the rich would allow collecting more revenues and reduce the budget deficit.
The reports claim that revenues shall increase to 12.1 billion Omani riyals ($31.5 billion approximately) while the total spending will be 12.6 billion Omani riyals by the end of 2024.
Is it final?
However, it is stated by the Agencies that the tax implementation is still under research: its application is being considered and it shall be introduced in 2022.
The first GCC country to impose Income Tax
If Oman imposes income tax on individuals, it will be the first Gulf country to impose the income tax. There is a possibility that other GCC countries would follow them.