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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Tax sops for electric vehicle buyers in Oman

Tax sops for electric vehicle buyers in Oman
Tax sops for electric vehicle buyers in Oman
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The Ministry of Transport, Communications, and Information Technology (MTCIT has urged potential vehicle owners to take advantage of benefits offered by the government to encourage the use of electric vehicles (EVs).


Some of the benefits offered by the government are 100 per cent exemption from customs tax for electric vehicles from customs, exemption from registration fees for electric vehicles at the Royal Oman Police (ROP), and a zero per cent value-added tax for vehicles and their spare parts.


A wide network of electric charging stations has been developed in many cities and public locations, to facilitate the process of charging vehicles and alleviate concerns about their travel range.


The advantages to owners offered by electric vehicles are low emissions and low maintenance, providing additional savings.


Working towards carbon neutrality by 2050, Oman is exerting concerted efforts to reduce pollution from the transport sector, which accounts for 18 per cent of the total greenhouse gas emissions in the Sultanate.


According to the MTCIT, there are over 100 charging points across Oman, including in popular hotels and commercial centers, which are expected to go up gradually in the coming years to meet the increasing demand for EVs, which was estimated to be around 400 as of November 2023.


The Ministry of Commerce, Industry, and Investment Promotion (MOCIIP) has issued Ministerial Resolution 615/2023, which makes it mandatory for all service stations to offer electric vehicle (EV) charging stations.


The regulation complies with standards set by the Authority for Public Services Regulation (APSR), according to a Zawya report.


According to Mordor Intelligence, the Middle East and Africa Automotive Electric Vehicle Market size is estimated to reach from $3.33 billion in 2024 to $9.42 billion by 2029.


"The automotive industry witnessed significant growth in terms of sales in the previous year, and it is expected to continue during the forecast period.”


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