The Gulf state of Oman has a number of essential goods and services on which the Omani government has not imposed a value added tax (VAT).
According to Arab media reports, the Sultanate of Oman announced the imposition of 5% value added tax within six months, but as a relief, there are goods and services to which the tax will not be applicable.
According to the report, Oman's state-run communications center said basic food items, medical care items and services, educational goods and services, and items used for people with disabilities would be exempt from value-added tax. ۔
In addition, no VAT will be levied on sales deals related to vacant or residential houses and developed lands. The tax will also not be levied on investments in gold, silver and platinum.
Companies that provide travel by land, sea and air will also not have to pay value added tax. Emergency service vehicles and aircraft will also be exempt from tax.
Companies involved in the supply of crude oil and natural gas will also not have to pay value added tax.
It may be recalled that the government of Oman had said yesterday that the implementation of value added tax would not have much impact on daily expenses. Under this, 100 per cent tax will be levied on tobacco and its products while 50 per cent tax will be levied on soft drinks based on their purchase price.
