Avatar

Staff Writer

2260 Articles Published | Follow:

Oman Shura member says expat remittances a ‘hidden cancer’

Saudi Aramco CEO sees balance returning to oil market in H1

First 4 firms approved to list on Saudi’s parallel market

Abu Dhabi’s Masdar acquires 25% stake in Scottish offshore wind farm

Dubai economy grows 2.7% in 2016, faster growth expected in 2017

Kuwait finalising plans for dollar bond sale – report

Omani officials against lifting of 2-year visa ban for expats

Former Saudi Oger workers complain of payment delays after September dismissal

Dubai hourly car rental service returns after suspension

Omani mobile operator Samatel announces termination of services

Nearly 1,500 employees resign from Saudi government jobs in 2016

Saudi prepares to handover 120,000 homes to citizens

Dubai Trump International Golf Club to open next month

Dubai’s Nakheel invites construction proposals for $1.36bn Deira Islands Boulevard

Abdul Latif Jameel Energy forms new water projects unit

Dubai Taxi Corp, AAA partner for smart vehicle recovery app

Pictures: Royal Continental Hotel opens first Middle East property in Dubai

Saudi businessmen call for new expat dependents, foreign worker fees to be paid monthly

Dubai’s Emirates introduces paid access to its lounges

Dubai’s Emirates to begin daily flights to Zagreb

Saudi to cut up to $20bn of projects

Kuwait MPs call for changes to constitution

Inbreeding costing Saudi millions of riyals – official

India’s Haj pilgrim quota increased by 25%

Dubai’s RTA signs deal with Uber to explore cheaper transport options

Oman could become the first country in the Gulf Cooperation Council to introduce value added tax as it looks to raise revenues, according to reports. Oman Daily Observer cites an official familiar with the matter as saying the “final touches” are being made to the country’s draft law relating to VAT. “It is only a matter of timing,” he said, without specifying the tax rate. "There will be no exemptions, and all consumers will pay the VAT upon its implementation," he said, adding, "key sectors, sectors such as health, education and social services may not be included in the new tax net". The source said around 94 food items would also be exempt and the country expected to raise OMR 300m ($779m) each year from the levy for state coffers. However, he ruled out any plans to introduce income tax in the country, according to the publication. A GCC-wide agreement to implement a VAT rate of 5 per cent is in the works with the UAE already confirming its plans. Last month, the emirates said it would implement the levy from January 1 2018. Under the agreement, UAE minister of state for financial affairs Obaid Humaid Al Tayer said other countries in the region would have until January 1 2019 to follow suit. He said at least 100 foot items, bicycles, healthcare and education would be exempt from VAT, which is expected to raise Dhs 12bn ($3.2bn) for the country in its first year. In a report this month, consultancy firm EY’s MENA indirect tax leader Finbarr Sexton said VAT would have a “broad impact” on businesses in the region. “It will diversify government revenue sources and reduce reliance on oil revenues to finance government expenditures,” he said. “The additional revenues collected are likely to fund programmes for the development of job opportunities for nationals and improve education and healthcare in the GCC.” But he warned that there would be severe penalties for non-compliance. “All businesses must undertake a review of their current contracts to determine if VAT has been appropriately addressed,” he said. The implementation of VAT in the GCC is being driven by a prolonged decline in Brent crude prices from a $115-per-barrel peak in mid-2014 to around $40 this month. GCC countries are expected to post average fiscal deficits of 16 per cent this year, with a $275bn regional shortfall, according to the International Monetary Fund. Related articles VAT could become additional cost for GCC businesses Industry GCC Rail Completion Date Could Be Pushed To 2020 - UAE Minister Industry UAE Launches Strategy To Become Most Innovative Country In Seven Years Industry Newsletter Subscribe to get a Gulf Business update each day. By Robert Anderson Email Robert Latest More senior executives at Abu Dhabi bank FGB depart Emirates would buy more A380s even if new version shelved Saudi Aramco prepares for global expansion as IPO looms UAE workers say CEOs accountable for data breaches

Oman denies plans for Gulf-funded multi-billion dollar deposit

Removal of Saudi pilgrim limits to compensate for $16bn of losses – official

Saudi introduces one-day business visa processing

Dubai reveals new public parking rates for commercial areas

December business conditions improve in Dubai but little job growth

Dubai’s JAFZA introduces more flexible regulation for free zone firms