Oman approves new taxes on petrochemical, LNG firms

The new measures come as the sultanate tackles a sizeable budget deficit

Oman has reportedly approved a 35 per cent tax on petrochemical firms and increased taxation on liquefied natural gas companies to boost government coffers.

Times of Oman reported that the measures were approved in a joint session of consultative assembly Majlis Al Shura and the State Council.

“The tax on petrochemical firms and increase in LNG firms’ tax has been approved,” it cited Majlis Al Shura member Tawfiq Al Lawati as saying.

The change will see taxes for LNG firms increase from 15 per cent to 55 per cent.

Oman is expected to post an OMR 3.3bn ($8.6bn) budget deficit this year due to lower oil revenues.

The country has unveiled subsidy cuts, reduced benefits for public sector workers and increased fees to make up for the shortfall, following an OMR 4.5bn ($14bn) deficit last year.

Read: Visa fee hike could raise $325m for Oman