Muscat: The Value-Added Tax (VAT) is expected to provide additional resources for the state's public finances in the coming years.
To ensure that the tax does not affect the inflation rate and the cost of living of average citizens, the following items have been excluded from it - basic food commodities; medicine and medical equipment and related goods and services; education and related goods and services; financial services; undeveloped lands; resale of residential properties; passenger transport services; renting real estate for residential purposes; gold, silver and platinum; supplies of international transport and interchange of goods or passengers and the supply of related services; rescue and aid aircraft and vessels; crude oil, petroleum products, and natural gas; supply of means of sea, air and land transport for the transport of goods and passengers for commercial purposes; supply of goods and services related to transport; and supplies for people with disabilities and charities.
Oman's total revenue fell 12.4 percent to RO4.83 billion in June due to a fall in oil prices, while he net oil revenue of Oman fell 16.3 percent to RO2.57 billion in June 2020 compared to RO3.07 billion for the same period of the previous year, the report added.
The tax is expected to ensure the continued quality of public services, and it will also support the achievement of the Sultanate's goals to reduce dependence on oil and other hydrocarbon products.
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