Dining becomes cheaper in Oman with scrapping of service tax

Energy Monday 09/January/2017 22:06 PM
By: Times News Service
Dining becomes cheaper in Oman with scrapping of service tax

Muscat: Many diners used to find the eight per cent service charge irritating, but now waiters and waitresses in restaurants will have to earn their tips as the Public Authority for Consumer Protection (PACP) has taken it off the bill.
However, those eating in restaurants of hotels, or ones deemed to be in a tourism designated areas, can still expect to see the extra amount reflected in the bill.
Umar Faisal Al Jahdamy, deputy director of the PACP, said the new rule regarding service charge came into effect after Tourism Law number 2003/91 was amended and replaced with a new article numbered 2016/39.
“Now, any restaurants found adding a service charge in the bill can be considered as being in violation of the PACP law,” he clarified in a written reply to the Times of Oman.
In September 2016, the Ministry of Tourism removed the four per cent tourism tax from fast food restaurants and international coffee shops that do not fall under the supervision of the Ministry of Tourism (MoT), leaving only the five per cent municipality tax on bills.
Restaurateurs said they have started complying with the orders.
“We have removed the service tax mention from our menu. However, there is still confusion regarding certain restaurants which fall in the tourism designated areas.
“However, as a precautionary measure, we are not levying any service charge,” one manager at the Cave Complex in Muscat said, adding that they are now only charging the five per cent municipality tax on food bills.
Consumers, however, are very happy. “This is a great relief for us as we used to pay 12 per cent extra (four per cent tourism tax and eight per cent service charge) at the restaurants,” said Kumar, an Indian expat living in Oman.
Similarly, Mohammed Al Balushi, a citizen who loves dining out with his family at least twice a week, said, “My wife and I work and find little time to cook, so we depend mostly on restaurants. I feel this is a good move as some of the restaurants we often visit are not in the hotel or in tourist designated areas but we were made to pay these taxes. If we want to pay for the service, we will pay it as a tip to the workers there,” he said.