The implementation of a 5% value-added tax in Oman this year is seen bringing in 300 million rials ($779 million), the Oman News Agency reported Saturday, citing the Gulf nation’s finance minister.
Oman’s 2021 budget, announced Friday, forecasts a 14% drop in spending and a 19% decline in revenue after finances were ravaged by lower crude prices and the coronavirus pandemic. The country last year announced it would impose a 5% VAT in an effort to bolster the economy and curb its widening budget deficit.
The total financial boost from the measures taken in the 2021 budget plan is estimated at 3.5 billion rials.
Of that inflow, proceeds from VAT and excise tax will add about 413 million rials this year, while revenue collected from income tax on companies is seen at 400 million rials. Remaining revenue will amount to about 1.4 billion rials.