New packages to cap expenditure rise

The Social Security Scheme packages announced by the Ministry of Finance have been well received by the citizens, terming them as “a protective cover against the increase in regular expenditure”. “From doubling the amount of subsidised fuel to exempting more commodities from the value-added tax (VAT) net, all the measures will strengthen the livelihood programmes of the government,” said Ahmed al Yakoobi, who works as a driver in a private company. Last week, His Majesty Sultan Haitham bin Tarik approved a package of initiatives to expand social security worth more than RO 100 million as part of enhancing support given to the Ministry of Social Development. “All of us were very concerned about the forthcoming VAT implementation. Exempting more items from the VAT is definitely a protective cover against expenditure rise,” said Abdullah al Saleh, who works at a money exchange company. The list of basic food commodities charged zero per cent VAT has been expanded from 93 commodities to 488. At the same time, the government will bear the cost of the VAT charged against electricity and water services for all citizens who own two accounts or less of the residential category. This includes families that were previously eligible for government support for the two services. “The new packages aim to ensure the welfare of citizens. All the measures reflect the concern of His Majesty the Sultan regarding the uplift of the poor in Oman,” said Hamed al Balushi, a taxi driver, referring to the increase in the fuel subsidy. According to the announcement by Ministry of Finance, the package consists of doubling the amount of subsidised fuel per individual within the national fuel subsidy system from 200 litres to 400 litres. The government will bear the cost of VAT on the subsidised quantities so it is expected that the price of Fuel 91 would continue at the same price of 180 baisas per litre. The package is also directed towards the private sector and focuses on employment matters. Omani citizens with monthly income of less than RO 350 will be exempted from the housing loan payments. In this regard, Dr Khalfan bin Said al Shueili, Minister of Housing and Urban Planning, said more than 650 families will get the benefits of the social protection scheme. “This decision will strengthen the social stability of more than 650 families; it amounts to approximately RO 20 million,” the minister said in a statement. Accordingly, it extends the period of disbursing the job security benefit until the end of the current year, exempts all citizens benefiting from the Sanad and livelihood (Mawarid al Rizq) programmes from paying unpaid amounts and exempting citizens with monthly income below RO 350 benefiting from the soft housing loan programme from their debts. Through Oman Development Bank (ODB), the government will provide interest-free financial incentives, which include sales and mobile services, household chores, owners of taxis licensed to work in hotels and airports, women’s projects, workers in the field of fishing — all in accordance with the principles to be announced by the bank. Meanwhile, Abdul Azim bin Abbas al Bahrani, Chairman of the Board of Directors of the ODB, confirmed that the Board of Directors directed the executive management of the bank to form a special work team to implement the decision of the social protection initiatives.