Starting early next year, Oman will start to impose a five percent value-added tax (VAT).
Once implemented, Oman will be fourth country in the GCC (Gulf Cooperation Council) to levy VAT as agreed by the six member countries.
Currently, UAE, Saudi Arabia and Bahrain are implementing it.
The adoption of VAT by GCC countries, according to a study by EY, will generate additional revenues of $25 billion (Dh91.83 billion).
According to Ali bin Masuod Al Sunaidy, Minister of Commerce and Industry in Oman, in an interview with Bloomberg TV, the capital Muscat is targeting 2.5 percent to 3 percent economic growth this year, unless some geopolitical tension emerges in the neighborhood.
The minister also said that they are looking at other aspects to drive the economy of Oman like tourism, manufacturing, fisheries, and logistics sectors.
They are also hoping that prices of oil will cross $70 (Dh257) per barrel which will be helpful for regional economies.
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