Oman’s Ministry of Finance has reportedly postponed any move on Value-Added Tax (VAT) until 2019, but it will start selectively taxing some goods in mid-2018, according to the government broadcaster.
The application of the selective tax on certain products will start by the middle of 2018, according to a report on national broadcaster Oman TV, which cited ministry sources.

The products targeted for the so-called ‘sin tax’ are fizzy drinks cigarettes and energy drinks.

The delay in collecting the VAT until 2019 is expected to provide the country’s businesses with more time to prepare for it . “Basically, this (delay in implementation) will give more time for the corporate sector and people to prepare for the VAT regime,” said George Mathew, managing partner of RSM Oman. “Those companies that have not yet started the initial preparation will get more time, since it is going to be implemented in 2019,” added Mathew. Oman plans to introduce a 5 per cent VAT, along with other GCC states.

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