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Oman’s Ministry of Finance has postponed value-added tax (VAT) implementation until 2019, but will start selectively taxing some goods in mid-2018, state-owned Oman TV reported, citing ministry sources.
The delay in VAT implementation is expected to provide the country’s businesses with more time to prepare, the national broadcaster said.
The products likely to be taxed under the selective levy will be fizzy drinks, cigarettes and energy drinks, it added.
Saudi Arabia and the UAE will introduce a 5-percent VAT on January 1, 2018. The two countries have already started imposing 100 percent excise tax on tobacco products and energy drinks and 50 percent tax on soft drinks.
Meanwhile, Reuters reported tax experts saying that Kuwait would considerably delay introducing of the VAT. Bahraini officials, however, expect the introduction of the tax by mid-2018.
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