Muscat (Shadesofgalaxy latest newspaper. December 22, 2022) The Gulf government has refused to increase VAT or impose income tax. According to local media, Finance Minister Sultan bin Salem Al Habsi said during the presentation of the 2023 state budget that the government does not intend to impose income tax on those who pay well and do not increase the price in 2023. . . . – Value Added Tax (VAT) is more than 5%.
He said the 2023 budget would increase government spending by 7 percent to 12.95 trillion riyals, while cuts would amount to 1.3 billion riyals, or 11 percent of total revenue and 3 percent of GDP. With the country’s growth and the preparation of the 2023 state budget, Oman used profits from rising oil prices to reduce public debt, bringing the public debt to 2020. In 2022, it will decrease from 70% to 43%.
Al-Habsi said that the government will start implementing the plan for the financial stability and development of the financial sector by developing plans and programs in cooperation with the Central Bank of Oman (CBO) and the Financial Markets Authority (CMA). . . . And loans and investments in the banking system meet the goals of the national plan to improve fiscal balance.
The finance minister said Oman was able to maintain growth at a healthy level of 3 percent due to policies to counter the impact of the trend with a total financial assistance of 1.6 billion Omani Rials in 2022. Deputy Minister of Economy Nasir Al-Maauli said in a press conference on economic management, structural changes and rising oil prices that the economy has received significant benefits. 11,650 billion Omani Rials, or 10% more than the planned 2022 budget.
