Many goods to cost more from April

Come April, citizens and residents will have to shell out more on many of the commodities they purchase or the services they avail. According to the announcement in Oman Budget 2021, Value Added Tax (VAT) will be imposed on many of the goods and services in Oman starting from April 2021. 2nd week of April If calculated on the basis of the announcement made in October last, this indirect tax on consumption is expected to go live from the second week of April as it would be effective after 180 days from the date of its publication in the official gazette. The government has earlier announced the approval of VAT through Royal Decree No 121/2020 dated October 12, 2020. With the VAT implementation, Oman will join 160 other countries on a global level and is expected to generate RO 300 million in revenue through value-added tax at the rate of 5 per cent this year. lowest rates “The value added tax rate to be applied in Oman is among the lowest rates at the international level. Therefore, it is expected that the impact of VAT on the cost of living in Oman will be minimal”, said a statement issued by the ministry of finance. The tax will be imposed on most goods and services, with the exemption of a specific set of goods and services, rendered to consumers. It will also be imposed on imports of goods to the sultanate, except the ones exempted by law. exemptions The list of goods and services exempted from the soon-to-be-imposed VAT includes healthcare, education, financial services, basic food items and supplies for persons with special needs, among other items and services. “The VAT will have a positive impact on the economic and social development and the international competitiveness of Oman”, said the statement. According to the ministry, the financial resources obtained from this tax will contribute to building a sustainable economy for future generations, and it will also contribute to improving public services and continuing the development of infrastructure in future. “The tax is expected to provide an additional source of support to the Oman’s general finance. It is also expected to ensure the quality of public services and facilitate the sultanate’s diminishing dependence on oil and other hydrocarbon sectors as main sources of revenues”, the statement from the ministry said. Oman’s business sector will serve as collector of tax in the sultanate and it will bear the cost of imposing the VAT, collecting it, claiming it and adhering to it as per the law and bylaw.