Opinion- Can personal income tax hurt Oman’s competitive business environment?
Published: 04:07 PM,Jul 17,2024 | EDITED : 02:07 PM,Jul 24,2024
The debate is ongoing regarding the potential imposition of income tax on individuals in the Sultanate of Oman. However, no specific timeframe for this introduction has been announced yet. The media, along with local radio and television programs, are animatedly discussing this issue and its implications. Many voices still urge patience, especially as many Omanis are still searching for suitable job opportunities. Meanwhile, the state is making strenuous efforts to attract foreign investment, provide job opportunities for citizens, and enhance development projects to engage Omanis in the country's economy.
For businesses, the final decision to impose income tax must primarily serve the Omani economy and social goals. It is well-known that the Sultanate has recently made progress in raising its competitiveness and investment attractiveness, according to international institutions' statements. Imposing an income tax could delay efforts to employ citizens, increase layoffs in existing institutions and companies, and potentially delay attracting new investments to the country. This decision is unprecedented in the region and aims to strengthen the financial budget. The state's annual tax must distribute the benefits to other social groups.
Local efforts aim to balance the economic and social dimensions, requiring the adoption of flexible economic policies to encourage the private sector and stimulate investments. Economic plans should focus on employing more Omanis and keeping them engaged in the economic arena. There is a great need to stimulate various sectors, especially manufacturing, technology, renewable energy, tourism, agriculture, and fisheries. Any hasty decision could have negative consequences, especially since the authorities are working to enhance competitiveness by providing flexibility, incentives, benefits, and protective legislation for investment and trade.
Oman should avoid imposing more taxes to exploit its natural resources and logistical capabilities, given its strategic geographical location. Enhancing the commercial and industrial fields is crucial. Naturally, the private sector's contribution to the gross domestic product will increase, boosting foreign trade. Over the past four years, Oman has improved its financial position by paying external debts and reducing debt service expenses, leading to better ratings from international credit agencies. This progress will help achieve economic diversification, attract more investors, expand the private sector's role in sustainable development, accelerate the growth of non-oil activities, and improve the overall business environment.
For businesses, the final decision to impose income tax must primarily serve the Omani economy and social goals. It is well-known that the Sultanate has recently made progress in raising its competitiveness and investment attractiveness, according to international institutions' statements. Imposing an income tax could delay efforts to employ citizens, increase layoffs in existing institutions and companies, and potentially delay attracting new investments to the country. This decision is unprecedented in the region and aims to strengthen the financial budget. The state's annual tax must distribute the benefits to other social groups.
Local efforts aim to balance the economic and social dimensions, requiring the adoption of flexible economic policies to encourage the private sector and stimulate investments. Economic plans should focus on employing more Omanis and keeping them engaged in the economic arena. There is a great need to stimulate various sectors, especially manufacturing, technology, renewable energy, tourism, agriculture, and fisheries. Any hasty decision could have negative consequences, especially since the authorities are working to enhance competitiveness by providing flexibility, incentives, benefits, and protective legislation for investment and trade.
Oman should avoid imposing more taxes to exploit its natural resources and logistical capabilities, given its strategic geographical location. Enhancing the commercial and industrial fields is crucial. Naturally, the private sector's contribution to the gross domestic product will increase, boosting foreign trade. Over the past four years, Oman has improved its financial position by paying external debts and reducing debt service expenses, leading to better ratings from international credit agencies. This progress will help achieve economic diversification, attract more investors, expand the private sector's role in sustainable development, accelerate the growth of non-oil activities, and improve the overall business environment.