[Oman-L] Oman plans to introduce VAT in 2009

[Joachim Duester]

Oman plans to introduce VAT in 2009   
Source: Khaleej Times, 27 May 2008

Oman is planning to introduce a Value Added Tax (VAT)
as part of a government drive to cut its reliance on
oil and could bring in the measure as early as next
year, a government official said yesterday.

"VAT is certainly on the cards and it can come as
early as next year," said a Ministry of Commerce
official, who did not want to be identified. "The
government needs to boost its financial apparatus to
reduce reliance on oil revenue."

The government relies on oil for about 70 per cent of
its income. The maximum VAT rate would be five per
cent and apply to "general goods", except in health,
said the official, without being more specific.

The rate is capped "in consideration of prevailing
inflation," the official said.

"VAT is definitely happening in Oman and we are
sounding out all our clients to prepare for it,"
Michael Armstrong, managing partner of KPMG, said.