New law to help combat ‘hidden trade’

A new law is in the offing to combat the so-called ‘hidden trade’ menace, said Dr Ali bin Masoud al Sunaidy, Minister of Commerce and Industry, announced on Wednesday. Addressing the Majlis Ash’shura, Dr Sunaidy said the proposed statute will obligate commercial firms to disclose their tax returns, which will make it easier for authorities to uncover any clandestine commercial activities. He also appealed for support from the wider community to stamp out this phenomenon. “We cannot combat the hidden trade without the society’s cooperation. For example, names are repeated in more than one commercial register and in sub-registers as well, which means that they are clearly not full-time owners of these businesses.

“For this reason, a team consisting of representatives from the Ministry of Commerce and Industry, Ministry of Manpower, and Royal Oman Police, was formed to detect companies that have part-time employers, which netted a number of unauthorised individuals. By March or April next, we will have a law that criminalises clandestine trade of all kinds. “We are also working to integrate the Invest Easy portal with the relevant legal framework to require companies to disclose their tax returns compulsorily,” he stressed.

Dr Sunaidy also revealed that 3,498 citizens have secured employment by the end of December 2017 as part of His Majesty the Sultan’s Royal directives for the creation of 25,000 new positions for young Omani job-seekers. Of this number, 800 have been employed in industrial enterprises, he noted. The year 2018, the minister stated, will also witness a number of policies and initiatives designed to help commercial organisations weather the current economic crisis. However, the industrial sector was relatively untouched by the downturn, he added.

“The Sultanate has proved its ability to deal prudently with the crisis by supporting the diversification of the national economy and fostering a positive business environment,” he said. He lamented the private sector’s inability to create sustainable employment opportunities for Omanis. Only around 230,000 Omanis have jobs in the private sector, far less than their peers in the public sector, he noted. Asked by a Majlis member if the ministry is reconsidering ban on import of private vehicles and trucks, Dr Sunaidy asserted that it was not in the public interest to lift the current ban, particularly as the automotive market is presently governed by competition.

“Car dealers are trading in new cars at lower prices than agencies, creating semi-showrooms with better priced vehicles. We don’t want to be a landfill for old cars. The decision was taken in conjunction with many parties concerned, including environmental experts,” he stated. The minister singled out the mining sector as a rapidly expanding industry, having attracted a sizable chunk of investments last year – a trend that bodes well for Oman’s efforts to reduce its dependence on oil, he said. Significantly, trade with GCC countries is also on the uptick. “In 2017, non-oil exports to the UAE increased by 17.3 per cent, while imports ticked up 0.7 per cent. Trade with Kuwait and Saudi Arabia has also perked up.

“Moreover, Kuwait has invested around RO 171 million in the Sultanate, while Bahrain has invested around RO 161 million, mostly in the logistics and industrial sectors. We will keep an eye on facilitating more such investments,” he added. The minister also said that initial indicators show that most of the economic sectors have been improving by the end of 2017. The gross domestic product (GDP) is projected to reach RO 29 billion at current prices, more than 12 per cent increase against 2016.

In his statement the minister said that oil activities contribute RO 9.5 billion to the national economy while industrial activities are expected to contribute RO 5.5 billion of which RO 2.6 billion are projected to be contributed by the manufacturing sector, an 8 per cent increase over 2016. Al Sunaidi expects Oman’s economy to see more recovery in 2018 based on the private sector’s positive reaction to low oil prices over the previous years. Additionally, the economic recovery will be buoyed by the expansion in the commercial and services sectors and relative stability of the industrial sector as well as the increasing oil prices and the pumping of additional quantities of gas to meet the expansion in industrial activities, the minister said.

Zainab al Nassri