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Gulf country to launch 5% VAT from next month

A gulf country had decided to impose value-added tax  from April. Oman has announced this. Oman has decided to implement five per cent value-added tax (VAT) from April 16.

As per reports, VAT will contribute 1.5 per cent towards the country’s gross domestic product (GDP) and raise around 400 million Omani riyals (Dh3.8 billion; $1 billion) per year for the country’s exchequer. The implementation of VAT comes in line with the GCC framework that was agreed between the six nation bloc. The UAE and Saudi Arabia levied five per cent VAT on January 1, 2018 followed by Bahrain. Saudi Arabia later hiked VAT to 15 per cent amidst shortfall in revenues due to plunge in oil prices.

 

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