The first country of Oman Bana Bay region that has implemented income tax will be in effect from 2028

Dubai, June 23 (IANS). Oman became the first country in the Gulf Region that announced income tax. This historical step has been taken to increase extra income for the country’s economic development schemes. According to the state of Omani News Agency, this five percent income tax applies from January 2028 and will only apply to those whose annual revenue is $ 42,000 omani -rial (about 1.09 million US dollars) or more. This means that this new tax will only affect the top income group of one percent. None of the six member states of the Golf Cooperation Council (GCC) are currently chargeing income tax, and this tax-free system is considered attractive to migrant workers, especially in countries such as Saudi Arabia, the UAE and Qatar. Finance Minister Saeed Bin Mohammad Al-Sakri said this step was taken to free the country from dependence on oil and to make public income diverse, while social welfare costs will remain unchanged. The Ministry of Finance said that the individual income tax (PIT), which came into effect from the beginning of 2028, is an important step to strengthen the country’s financial stability and complete the exposition of fiscal sustainability. It aims to ensure permanent financing for different development areas. The minister said: “This new tax will help diversify public income by becoming an alternative source of income and reducing the risks associated with excessive dependence on oil. This will be achieved by maintaining the expenses to social and service sectors, the objectives of Oman Vision 2040 and the 10th five-year plan (2021-2025).” He said that this tax system would give long -term stability to the economy of Oman, strengthening the government’s revenue, also promoting the country’s credit rating, public spending capacity and economic demand. The minister also said that 68 percent of Oman’s total government revenue comes from oil and gas, which depends on global energy prices and very unstable. Oil prices may have been stable over the past few years, but the risk is that they are unstable. Oman used additional oil income effectively in measures such as reducing public debt, increasing investment and social spending and subsidizing essential goods and services. -Ians DSC/EKD shares this story -tags