Oman to impose value-added tax amid coronavirus, oil price collapse

Oman issued a royal decree on Monday that sets the stage for the sultanate to start collecting value-added taxes beginning in April as it grapples with the fallout of the coronavirus pandemic and oil price collapse.

Oman’s state-run news agency reported the 5 per cent tax “will be applied to most goods and services at each stage of the supply chain.”

The decree exempts necessary items like food staples, healthcare, education and financial services from the tax.

All six members of the Gulf Cooperation Council have agreed on a framework to begin collecting so-called VAT taxes.

As part of a series of austerity measures aimed at shoring up revenue amid the pandemic, Saudi Arabia tripled its taxes on basic goods from 5 per cent to 15 per cent over the summer.