Oman issued a royal decree on Monday that sets the stage for the sultanate to start collecting value-added taxes beginning in April as it grapples with the fallout of the coronavirus pandemic and oil price collapse.
Oman’s state-run news agency reported the 5% tax “will be applied to most goods and services at each stage of the supply chain.”
The decree exempts necessary items like food staples, healthcare, education and financial services from the tax.
Oil-exporter Oman has struggled as global oil prices remain low. A major credit agency in June downgraded Oman and put its outlook as negative, warning the sultanate had failed to stabilize its debt, which stands at around 60% of the country’s gross domestic product.