Oman predicted a fiscal deficit of 1.5 billion rials ($3.9bn) in 2022, down about 32 per cent from the previous year. Victor Besa / The National
Oman predicted a fiscal deficit of 1.5 billion rials ($3.9bn) in 2022, down about 32 per cent from the previous year. Victor Besa / The National
A draft law introducing income tax on high earners in Oman was passed on Sunday by the country's Shura Council. AFP
A draft law introducing income tax on high earners in Oman was passed on Sunday by the country's Shura Council. AFP
Pending approval from the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law. AFP
Pending approval from the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law. AFP
As the levy for wealthier people becomes more of a reality in Oman, citizens at both ends of the pay scale have expressed mixed reactions. AFP
As the levy for wealthier people becomes more of a reality in Oman, citizens at both ends of the pay scale have expressed mixed reactions. AFP
If a tax on income is introduced, the sultanate would be the first GCC country to do so. AFP
If a tax on income is introduced, the sultanate would be the first GCC country to do so. AFP
Oman began weighing up plans to introduce income tax on high earners two years ago, as part of the finance ministry's 2020-2024 economic scheme and efforts to reduce the fiscal deficit. Unsplash
Oman began weighing up plans to introduce income tax on high earners two years ago, as part of the finance ministry's 2020-2024 economic scheme and efforts to reduce the fiscal deficit. Unsplash
Plans for an income tax on high earners were mentioned in a bond prospectus published by the ministry in 2020, when the sultanate raised $2 billion in external financing. Silvia Razgova / The National
Plans for an income tax on high earners were mentioned in a bond prospectus published by the ministry in 2020, when the sultanate raised $2 billion in external financing. Silvia Razgova / The National

Gulf

Mixed reaction as Oman passes draft law on income tax for high earners

Experts say such a levy would be a good idea overall for the country's finances

The National

November 08, 2022

  • English
  • Arabic

A draft law introducing income tax on high earners in Oman was passed on Sunday by the country's Shura Council.

Pending approval of the Council of Ministers and a final endorsement from Sultan Haitham, the tax will then become law.

As the levy for wealthier people becomes more of a reality in Oman, citizens at both ends of the pay scale have expressed mixed reactions.

'Too soon to tell'

The National spoke to local residents who said they had reservations about the change, and their feelings would depend on exactly how much would be deducted from their wages.

“First, we need to know what bracket of the high income earning is, which now we don’t know," said Ali Al Sabti, deputy managing director of Wave Constructions.

"Second, what percentage of the cut? If is it between 3 to 5 per cent, then I guess it will be OK. No high income earner will have to complain if it is on that low a level. If it is over that threshold, then it can hit our income.”

If a tax on income is introduced, the sultanate would be the first GCC country to do so. All six GCC states agreed to introduce VAT in 2016. Saudi Arabia and the UAE brought in VAT in 2018 and Bahrain followed suit in 2019.

Middle-income earners said they were also concerned with what the new law, if implemented, would mean for them in the long run.

“I have a feeling that once high earners are taxed, it would not be long until the government decides to charge income tax to middle earners like us," said Salim Al Habsi, a mechanic working for Bahwan Automobiles.

"I am convinced it will be a matter of time before the new income tax is to be made universal after its implementation."

The Gulf nation began weighing up plans to introduce income tax on high earners two years ago as part of the finance ministry's 2020-2024 economic scheme and efforts to reduce the fiscal deficit.

Plans for an income tax on high earners were also mentioned in a bond prospectus published by the ministry in 2020, when the sultanate raised $2 billion in external financing.

Analysts predict little impact on citizens

Despite hesitancy from some Omanis, economic experts have said it was about time officials introduced an income tax to bring in revenue for the government. They also say that, if brought into force, it would not make much impact on the take-home salary of high earners.

“I don’t think, if income tax is implemented, it would make a big difference to high earners," Dr Venkat Thumiki, an economics lecturer at the Modern College of Business Science in Muscat, told The National.

"I predict it will be a nominal tax charge and it would not hurt them. But it is good for the country’s economy overall because it will help the government’s finances to pay for its deficits."

The International Monetary Fund last week praised the Gulf nation for implementing “prudent fiscal measures” this year in a bid to rein in on its deficits.

This year Oman has predicted a fiscal deficit of 1.5bn rials ($3.9bn), about 32 per cent lower than the previous year. It recorded a budget surplus of 784 million rials ($2bn) in the first half of 2022, as revenue grew on the back of higher oil and gas prices, according to government data released in August.

Places to visit in Oman: Nizwa Fort, Mutra Souq, Sultan Qaboos Grand Mosque and more - in pictures

Nizwa Fort in Nizwa, Oman. All pictures: Victor Besa / The National
Nizwa Fort in Nizwa, Oman. All pictures: Victor Besa / The National
It was built in the 1650s by Imam Sultan Bin Saif Al Ya'rubi.
It was built in the 1650s by Imam Sultan Bin Saif Al Ya'rubi.
It is Oman's most visited national monument.
It is Oman's most visited national monument.
Imam Sultan Bin Saif Al Ya'rubi was the second of the Ya'rubi dynasty of imams.
Imam Sultan Bin Saif Al Ya'rubi was the second of the Ya'rubi dynasty of imams.
The fort's underlying structure dates back to the 12th century.
The fort's underlying structure dates back to the 12th century.
Ahmed bin Abdullah Al Amri Trading. The souq has different parts depending on what you want to shop for.
Ahmed bin Abdullah Al Amri Trading. The souq has different parts depending on what you want to shop for.
In the mornings you will see locals buying vegetables and meat. The rest of the souq sells unique souvenirs like taqiya caps, lamps and fresh dates.
In the mornings you will see locals buying vegetables and meat. The rest of the souq sells unique souvenirs like taqiya caps, lamps and fresh dates.
Located near the castle, the souq offers a glimpse of old Oman.
Located near the castle, the souq offers a glimpse of old Oman.
A shop owner brings out his wares. Some sections of the souq have retained its ancient architecture and unrenovated structures.
A shop owner brings out his wares. Some sections of the souq have retained its ancient architecture and unrenovated structures.
Masjid Al Rasool Al A'dham at Mutrah Fish Market.
Masjid Al Rasool Al A'dham at Mutrah Fish Market.
The fish market stretches along the Mutrah waterfront in Muscat. Omani fishermen arrive early to unload, prepare and then sell their day’s catch.
The fish market stretches along the Mutrah waterfront in Muscat. Omani fishermen arrive early to unload, prepare and then sell their day’s catch.
The Mutrah Souq is located along the corniche in Muscat.
The Mutrah Souq is located along the corniche in Muscat.
It is one of the oldest souqs on the Arabian Peninsula.
It is one of the oldest souqs on the Arabian Peninsula.
However, the souq was rebuilt in the 1970s.
However, the souq was rebuilt in the 1970s.
Jamal Muhammad Ali Al Balooshi, shopowner at Mutrah Souq.
Jamal Muhammad Ali Al Balooshi, shopowner at Mutrah Souq.
Mutrah Corniche in Muscat.
Mutrah Corniche in Muscat.
A shopper at Mutrah Souq.
A shopper at Mutrah Souq.
Another person browses at Mutrah Souq.
Another person browses at Mutrah Souq.
Oman's Royal Opera House of Musical Arts in Muscat.
Oman's Royal Opera House of Musical Arts in Muscat.
The 'Oman and the World: A Musical Journey Exhibition' at the opera house.
The 'Oman and the World: A Musical Journey Exhibition' at the opera house.
A person looking around the exhibition.
A person looking around the exhibition.
A restaurant that looks like a fort, located along Sultan Qaboos Street in Muscat.
A restaurant that looks like a fort, located along Sultan Qaboos Street in Muscat.
Mandi, made with Omani samar wood.
Mandi, made with Omani samar wood.
The Rozna restaurant is known for serving the best authentic Omani food in Muscat.
The Rozna restaurant is known for serving the best authentic Omani food in Muscat.
The Sultan Qaboos Grand Mosque in Muscat. The chandelier sits 14 metres above the praying hall.
The Sultan Qaboos Grand Mosque in Muscat. The chandelier sits 14 metres above the praying hall.
In 1992, Qaboos bin Said Al Said, then Sultan of Oman, ordered the building of the grand mosque.
In 1992, Qaboos bin Said Al Said, then Sultan of Oman, ordered the building of the grand mosque.
The chandelier was manufactured by the Italian company Faustig.
The chandelier was manufactured by the Italian company Faustig.
Khalifa Nasser Al Maskery, 70, has been a volunteer tour guide at the mosque for more than eight years.
Khalifa Nasser Al Maskery, 70, has been a volunteer tour guide at the mosque for more than eight years.
A competition for the mosque's design took place in 1993.
A competition for the mosque's design took place in 1993.
Construction started in December 1994.
Construction started in December 1994.
The chandelier used to be the world's largest, before being replaced by one at the Sheikh Zayed Mosque in Abu Dhabi.
The chandelier used to be the world's largest, before being replaced by one at the Sheikh Zayed Mosque in Abu Dhabi.
Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

MATCH INFO

Day 2 at Mount Maunganui

England 353

Stokes 91, Denly 74, Southee 4-88

New Zealand 144-4

Williamson 51, S Curran 2-28

The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Neighbourhood Watch
On Women's Day
The specs

BMW M8 Competition Coupe

Engine 4.4-litre twin-turbo V8

Power 625hp at 6,000rpm

Torque 750Nm from 1,800-5,800rpm

Gearbox Eight-speed paddleshift auto

Acceleration 0-100kph in 3.2 sec

Top speed 305kph

Fuel economy, combined 10.6L / 100km

Price from Dh700,000 (estimate)

On sale Jan/Feb 2020
 

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

While you're here
UAE currency: the story behind the money in your pockets
Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

UAE squad

Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.

UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

On Women's Day
The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

From Europe to the Middle East, economic success brings wealth - and lifestyle diseases

A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.

One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait,  Qatar and Oman – and second on the list in Bahrain.

In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.

The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.

And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.

 

How to join and use Abu Dhabi’s public libraries

• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.

• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.

• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.

• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.

• For more information visit the library network's website.

UAE currency: the story behind the money in your pockets
While you're here
The biog

Name: Sari Al Zubaidi

Occupation: co-founder of Cafe di Rosati

Age: 42

Marital status: single

Favourite drink: drip coffee V60

Favourite destination: Bali, Indonesia 

Favourite book: 100 Years of Solitude 

Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania ​​​​​​​
Verdict: 4 Stars

Western Region Asia Cup Qualifier

Results

UAE beat Saudi Arabia by 12 runs

Kuwait beat Iran by eight wickets

Oman beat Maldives by 10 wickets

Bahrain beat Qatar by six wickets

Semi-finals

UAE v Qatar

Bahrain v Kuwait

 

THE TWIN BIO

Their favourite city: Dubai

Their favourite food: Khaleeji

Their favourite past-time : walking on the beach

Their favorite quote: ‘we rise by lifting others’ by Robert Ingersoll

Updated: November 08, 2022, 11:17 AM`
OmanTax