Sun 09 June 2019:
Slow at implementing fiscal reforms, Oman has had to rely on external funding through bonds and loans. A 5 percent value-added tax planned for 2018 is now expected to be implemented by the sulanate in 2020, according to Reuters. Oman followed similar sin tax increases in other Gulf states when the royal decree passed in March. Oman’s Government Communication Centre argued that the tax increases on cigarettes and alcohol will help combat health risks associated with the vices. “Selective taxation seeks to achieve a set of objectives, the most important of which is the promotion of healthy lifestyles, the treatment of negative phenomena… and an additional resource for public finances through the possibility of the tax revenues collected to promote health and social services,” is said in a statement.
Oman is already a relatively expensive destination for alcohol, with the average price of a beer around $8.60 a pint, mostly available at licensed hotels. The country is making a big push to increase tourism, as it attempts to diversify its economy away with oil and gas. It predicts the number of tourists coming to the country will increase by around five percent annually until 2023. The price increases comes as part of a GCC initiative to raise taxes for harmful goods across the Gulf bloc. The price of alcohol and cigarettes doubled in Qatar at the start of the year, while the UAE made a similar announcement in 2017.
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