By Team NewsPorter
The Sultanate of Oman, one of the six countries of the Gulf Cooperation Council (GCC) bloc, has set the process rolling to introduce income tax in the country.
According to recent media reports, the government of the Sultanate is likely to levy 5 to 9 per cent in taxes from those earning above Rs 84 lakh.
The media reports also speculate that Oman might become the first of the GCC countries to levy income tax.
On June 27 this year, the Sultanate’s Shura Council forwarded the draft law on Personal Income Tax (PIT) to the State Council, to culminate the legislative cycle of the PIT bill, according to Oman News Agency (ONA) – the country’s official news agency.
This, according to the ONA, was unveiled at the 12th regular session of the Shura Council’s first annual convening (2023-2024) during the 10th Term (2023-2027).
Shura Council is the lower house of the Council of Oman. It is the only legislative body in Oman in which all members are democratically elected. The other chamber of the parliament is the Council of State (Majlis al-Dawla).
Like the other GCC countries, which include the UAE, Kingdom of Saudi Arabia, Qatar, Kuwait and Bahrain, the Sultanate hosts a large number of foreign workers – the expatriate workforce – both blue- and white-collar.
The Indian community forms the bulk of the expatriate workforce in Oman just like in the other GCC bloc countries.
With the presentation of the Union Budget in July, income tax has been a topic of discussion among Indians, especially the ‘Middle Class’ in the Sultanate.
According to media reports, remittances sent by Indian expatriates amount to nearly Rs 27,000 crore.
One of the key attractions for expatriates earning their living in these GCC countries has been the absence of Income Tax.
However, the income tax wave might not stop at the Sultanate’s borders. The other GCC countries—Oman probably in the lead—may begin imposing income taxes as well.
Oman is located on the southeastern coast of the Arabian Peninsula and overlooks the mouth of the Persian Gulf. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen.
The capital and largest city of the Sultanate of Oman is Muscat.
Main picture on top of a tourist attraction in Muscat courtesy of The NewsPorter
