Muscat: The chairman of the Economic and Financial Committee of Majlis Ash'Shura has said that 29 articles have been amended in the draft personal income tax law to ensure fair distribution of wealth. He was speaking at the annual media meeting of the Majlis Ash'Shura to review the important achievements of the committee during the first round of its tenth term (2023-2027).
The impact of the tax, which will provide an additional source of income to the government for social and development projects, on investors' inflation has been also studied.
He said that the Economic Committee has been studying the project after it was referred to it by the Council of Ministers Tax Authority.
The study indicated that the overall impact on the economy because of the taxes will be about one per cent, due to the increase in operating costs, especially for workers in some institutions because they need them to raise their salaries. Individuals will salaries that are less than RO2,500 will not be subject to tax.
"We looked at the positive project as a diversification of sources of income and to ensure the fair distribution of wealth. The money collected from taxpayers that will be spent on expenses on development projects, the social protection system."
Previous experiences were also taken into account especially those related to the public debt during the time there was a big decline in oil prices. The country still depends on 70 per cent of its resources or budget income on oil and gas, and any future decline or any setback will undoubtedly have an impact."
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