Arab News, Tuesday, May 4, 2021 | Ramadan 22, 1442
Oman to get $780m revenues from VAT in 2021, $400m in 2022, says Ubhar CEO
Value-added tax (VAT) in Oman will provide the government 300 million Omani
riyals revenues in 2021 (about $780 million) and 400 million omani riyals in
2022, said Ubhar Capital SAOC CEO Loai Bataineh today.
He explained that the decline in revenues in the first quarter is due to the
decline in the price of oil and the restructuring of some government
investments, Al Arabiya reported.
Better oil prices and production, governmental apparatus restructuring and VAT
implementation in mid-April this year, will reflect a better performance in the
second quarter, Batained said.
Oman budget deficit reached 751 million Omani riyals in the first quarter of
2021 ($2 billion), due to 30 percent decline in revenues caused by the pandemic
outbreak and decline in oil prices.
The Sultanate intends to impose an income tax paid by high-income earners
starting next year, as part of plans to reduce the deficit.