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Whatever will be
Joined: 05 Feb 2014 Posts: 303
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Posted: Thu Jan 21, 2016 11:14 am Post subject: New tax next year, higher prices for electricity and water |
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http://timesofoman.com/article/75888/Oman/Government/Oman-plans-Value-Added-Tax-by-the-middle-of-next-year-says-a-member-of-the-Majlis-Al-Shura
Muscat: Value Added Tax (VAT) will be introduced in Oman by the middle of next year, or even earlier, a member of the Majlis Al Shura’s economic committee has told the Times of Oman.
“Implementation of VAT is in the final stages. Oman is working out a mechanism on how to collect the tax. So, by the mid-2017, we can expect VAT being introduced in Oman,” Tawfiq Al Lawati said
Struggling economies
With crude prices touching all-time low, economists in Oman and neighbouring countries have been stressing the need for VAT’s implementation to cushion the struggling economies.
Governments in all the GCC countries have been working on a model which could be implemented across the members simultaneously.
According to the Shura member, once implemented, the VAT amount would be about three to five per cent, with foodstuff and certain other products to be exempted from the tax.
“Through the introduction of VAT, we estimate that Oman will be able to earn between OMR200 million and OMR300 million extra every year,” the Shura member added.
Nasser Saidi, a GCC-based economist, said VAT is the most notable reform that Oman and its neighbours could adopt to boost revenue, while Manjot Sing Chug, a business tax advisor in Muscat, said given the current oil prices, the implementation of VAT is likely to be accepted as a positive measure for diversifying and strengthen the governments’ revenue base.
“While VAT is likely to be implemented at a uniform rate across the GCC, Oman should also plan to introduce selected excise taxes (e.g. on recreational vehicles, such as cars, boats, tobacco, alcoholic beverages, telecom services, hotels, energy products etc.),” Saidi stated.
Last December, there were media reports that countries in the GCC had agreed on key issues regarding the implementation of VAT in the region, but were still in talks about finalising and unifying the process.
“VAT cannot be implemented unilaterally, but has to be part of a Gulf-wide decision and if all GCC states agree on a deadline, then some could implement it ahead of the others,” Anchan CK, an investment advisor in Muscat, noted.
During the first week of January and while unveiling the details of the OMR3.3 billion deficit general budget, the government had focused heavily on austerity measures, such as increasing the contribution of non-oil revenues to total revenues, reducing dependence on oil revenues and the introduction of tax reforms.
Last year in December, Majlis Al Shura had voted yes for a 3 per cent increase in corporate income tax. The current corporate income tax for companies, which is 12 per cent, was raised to 15 after approved by the State Council this month.
According to Saidi, in addition to VAT, a recurrent property tax could also be levied, given the difficulty in evasion and potentially large base; plus, the tax could be extended to vacant land, as was implemented recently in Saudi Arabia.
“Furthermore, the government could move towards a more efficient, equitable pricing of public services and utilities, as was done in Abu Dhabi last year,” he added. |
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veiledsentiments
Joined: 20 Feb 2003 Posts: 17644 Location: USA
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Posted: Thu Jan 21, 2016 4:11 pm Post subject: |
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Since VAT is supposedly imposed at production... and Oman doesn't really make much of what is sold there, I suspect that what they are thinking about is actually a sales tax.
VS |
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EFL Educator
Joined: 17 Jul 2013 Posts: 988 Location: Cape Town
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Posted: Fri Jan 22, 2016 3:07 am Post subject: |
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Me thinks the next thing they will tax are your tax free salaries.... and I have also heard this from many sources...welcome to Oh Man!!! |
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rustyrockets
Joined: 06 Sep 2015 Posts: 78 Location: Thinking about it...
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Posted: Fri Jan 22, 2016 5:07 am Post subject: |
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EFL Educator wrote: |
Me thinks the next thing they will tax are your tax free salaries.... and I have also heard this from many sources...welcome to Oh Man!!! |
That will probably cause a huge exodus of expat workers, the country will become less attractive for TEFL, and they will probably have to lower selection standards since people will earn less. |
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nomad soul
Joined: 31 Jan 2010 Posts: 11454 Location: The real world
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Posted: Fri Jan 22, 2016 5:27 am Post subject: |
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rustyrockets wrote: |
That will probably cause a huge exodus of expat workers, the country will become less attractive for TEFL, and they will probably have to lower selection standards since people will earn less. |
Probably not. Many expats have called Oman home for years and aren't likely to leave. That includes qualified Egyptians, Jordanians, Yemenis, Indians, etc. |
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veiledsentiments
Joined: 20 Feb 2003 Posts: 17644 Location: USA
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Posted: Fri Jan 22, 2016 4:03 pm Post subject: |
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I suspect that income taxes... when they appear... will come in all the GCC at the same time to stop people from transferring around to avoid them.
VS |
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izmigari
Joined: 04 Feb 2016 Posts: 197 Location: Rubbing shoulders with the 8-Ball in the top left pocket
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Posted: Sat Mar 26, 2016 5:34 am Post subject: |
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Quote: |
...plus, the tax could be extended to vacant land, as was implemented recently in Saudi Arabia. |
Huh! Saudi Arabia has vacant land!
Who da thunk it? |
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Whatever will be
Joined: 05 Feb 2014 Posts: 303
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gregory999
Joined: 29 Jul 2015 Posts: 372 Location: 999
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Posted: Wed Apr 06, 2016 9:04 am Post subject: |
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Native speakers it is time to tighten your belts, the golden time in the ME is over, you will be subject to the sin taxes! |
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Whatever will be
Joined: 05 Feb 2014 Posts: 303
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Posted: Wed Apr 06, 2016 9:11 am Post subject: |
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Native speakers (with decent qualifications and reference letters) have other options. The world is a big place |
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veiledsentiments
Joined: 20 Feb 2003 Posts: 17644 Location: USA
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Posted: Wed Apr 06, 2016 3:50 pm Post subject: |
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gregory999 wrote: |
Native speakers it is time to tighten your belts, the golden time in the ME is over, you will be subject to the sin taxes! |
The "golden time" in the ME was over about 15 years ago when the pay, benefits, and conditions started their inexorable decline.
VS |
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