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Oman Business News

Joint session okays draft law on goods tax

The draft law on Selective Goods Tax was approved on Tuesday during a joint session of Majlis Ash’shura and the State Council.

The new tax is expected to rake in a revenue of RO 100 million. Based on the Royal directives of His Majesty Sultan Qaboos, the joint session was held to discuss the areas of disagreement on the draft law. The session was presided over by Dr Yahya bin Mahfoudh al Mantheri, Chairman of the State Council, and Shaikh Khalid bin Hilal al Maawali, Chairman of the Majlis Ash’shura.

“During the third annual session of the sixth period, both councils reviewed the draft Law, which was referred by the Council of Ministers. They agreed on 38 articles in addition to 18 other articles with slight amendments, while they argued over three articles 22, 49 and 57 in addition to two new articles proposed by the State Council,” said Dr Al Mantheri.

Commenting on the joint session, Saleh bin Saeed Masan, Head of the Economic and Financial Committee, said there were five articles on which there was a disagreement.

Talking about the positive impacts of the law, he said: “It will rationalise patterns for the consumption of certain health-damaging goods, so it will raise the level of public health in the Sultanate and reduce the cost of treatment bills.”

He continued: “It is expected the consumption of this type of goods will decrease in the first year from 15 per cent to 20 per cent.”

In April this year, the official gazette had published Ministerial Decision No 64/2018 to impose local taxes or charges on goods and services.

As per the details, taxes of varying rates, to be borne by consumers, will be imposed on goods that are harmful to public health and environment such as tobacco products, power drinks and alcohol.

The members of the State Council and Majlis Ash’shura stressed the importance of reaching consensus on the articles of the draft law to serve public interest. The chairman of the State Council congratulated the members on the occasion of the 48th National Day, appealing to Allah to ensure good health and welfare for His Majesty and for the Omani people further progress and prosperity.
  • Oman
  • Majlis Ashshura
  • State Council
  • Goods Tax
  • Revenue
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