According to a member of the Shura Council, anybody in Oman who make more than RO 2,500 would be subject to income tax.

More than 29 provisions of the draft income tax law have been revised, and people making less than RO 2,500 would not be subject to taxes, according to HE Ahmed Al Sharqi, Chairman of the Majlis Al Shura’s Economic and Financial Committee.

MUSCAT: According to His Excellency Ahmed Al Sharqi, Chairman of the Economic and Financial Committee at Majlis Al Shura, once income tax is established in Oman, people who make more than RO 2,500 per month (more than RO 30,000 annually) will be subject to it.

The adoption of a personal income tax on high-income people in Oman is nearing completion. As of late June, the Council of State has received the draft personal income tax law from the Shura Council.

“After conducting a thorough analysis of the law’s effects and the state of the economy, we have modified over 29 provisions of the draft individual income tax law. During the Majlis Al Shura’s annual media briefing on Tuesday, Al Sharqi stated, “It would undoubtedly give the government an extra source of cash for social and development programs.”

70% of our nation’s income still comes from oil. Therefore, we ought to consider these other revenue streams. According to Al Sharqi, the economy will be impacted by individual income tax by 1% after it is put into effect.

Diversifying revenue streams and enacting tax reforms through taxation continue to be top priority for the Gulf nations that export oil, according to the International Monetary Fund.

The IMF stated in the World Economic Outlook that the GCC’s top priorities continue to be diversifying its revenue streams and enacting tax reforms (by introducing and expanding value-added, personal income, and corporate income taxes).

According to the IMF, “in certain economies, raising the tax base to generate a larger income stream could supply the finances required to address social and developmental needs.”

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