Oman to get $780mln revenues from VAT in 2021, $400mln in 2022, says Ubhar CEO
RIYADH: Value-added tax (VAT) in Oman will provide the government 300 million Omani riyals revenues in 2021 (about $780 million) and 400 million omani riyals in 2022, said Ubhar Capital SAOC CEO Loai Bataineh today.
He explained that the decline in revenues in the first quarter is due to the decline in the price of oil and the restructuring of some government investments, Al Arabiya reported.
Better oil prices and production, governmental apparatus restructuring and VAT implementation in mid-April this year, will reflect a better performance in the second quarter, Batained said.
Oman budget deficit reached 751 million Omani riyals in the first quarter of 2021 ($2 billion), due to 30 percent decline in revenues caused by the pandemic outbreak and decline in oil prices.
The Sultanate intends to impose an income tax paid by high-income earners starting next year, as part of plans to reduce the deficit.
