The night closure of commercial activities to be implemented from today has come as a temporary setback for commercial establishments and retailers that were hoping to lure customers with some offers in the run-up to the implementation of Value-Added Tax (VAT).
Despite stern warnings from the Supreme Committee and the Ministry of Health for seeking cooperation from the public to fight the pandemic, the number of Covid-19 related violations continue to be reported in the Sultanate.
Businesses, which are facing challenges from unrelenting pandemic, are trying to urge customers to take advantage of VAT-free promotions.
It may be noted that VAT will be introduced in Oman from April 2021.
According to businesses, notwithstanding the current situation there are chances of a section of consumers taking advantage of the promotions by increasing their spending.
A few automobile dealers in the country have been sending promotional messages directly or through social media.
“Take advantage of the pre-VAT offers’’, said a dealer in its messages to customers.
“Given all the benefits, coupled with VAT savings, this is a great opportunity that should not be missed by anyone. So, we highly recommend they make the most of this promotion before it ends on March 31’’, said Mitsubishi Motors Oman in a release.
“We had planned aggressive promotions for this month on our brands including watches, gadgets and household electronic appliances. This evening closure of commercial establishments will be a damper as that is the peak time for shoppers. We still see a chance with online business,” said a senior official of a leading authorised distribution company in the country.
“With bank and finance companies going slow on loans and financing, especially to expatriates, and the prevailing uncertainty in the job market, we are we hoping on pre-VAT and upcoming Ramadhan deals. We still hope consumers will take advantage of the offers,” said another automobile group.
Oman will join the league of 160 countries which apply VAT around the world.
The VAT is an indirect tax whose value is borne by the final consumer, while the seller calculates and collects the tax and pays it to the tax authority. The tax on consumption will be applied in the Sultanate at a basic rate of five per cent.
With around 94 customs tariff items such as meat, fish, poultry, dairy products, fresh eggs, vegetables, fruits, coffee, tea, cardamom, cereals and grains, olive oil, sugar, child foods, bread, bottled water and table salt to be exempted from the VAT, the impact on the inflation will be minimum in the short-term, feel the experts.
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