Oman’s Ministry of Finance has postponed the decision to implement the value-added tax (VAT) until 2019.
The application of the selective tax on certain products will start by the middle of 2018, the ministry said. The selective tax includes those harmful to health such as alcohol, tobacco, ham and fizzy and energy drinks.
No further details were given by the Omani authorites.
In 2016, Oman had announced that it will implement the value-added tax (VAT) by the beginning of 2018 in a move to diversify its revenues amid the decline in oil prices.
The estimated income from VAT in Oman could add between $520 million and $779 million every year, the ministry said at that time.
Tax experts in the region believe Kuwait will also witness delays in introducing VAT. Bahraini officials said VAT is expected by mid-2018.
A Qatari finance ministry source told Reuters that Doha was likely to introduce VAT in the second quarter of 2018, but the ministry has not formally announced a date and the tax was not included in the 2018 state budget.
Levying a value-added tax (VAT) is the outcome of joint efforts between Qatar and other GCC states.
By Fahad Al Mukrashi
Editor's note: The article has been adapted from its original source.
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