Wednesday 03 / July / 2024
Muscat: A number of government bodies have slashed or cancelled fees across more than 500 services offered to investors and members of the public.
The move was part of an initiative to make Oman more competitive, strike a balance between the services and fees paid for them, rationalise government spending, streamline fee structure and improve the value of services offered to the customers.
Fees have been cancelled or reduced for 548 government services offered by the Ministry of Heritage and Tourism, the Ministry of Commerce, Industry and Investment Promotion and the Muscat Municipality among other municipal organisations. Fees have been revised in line with the government services pricing guide that came into effect following the approval of His Majesty Sultan Haitham bin Tarik, when he presided over a cabinet meeting on 9 November, 2021.
The MOCIIP has cut fees across 30 services from anywhere between 17 and 96 per cent, depending on the type of service. Among the most important cuts are the fees charged by the consulting offices. From between OMR500 and OMR250, their fees have been fixed at OMR50, and the fee to obtain an industrial licence has also been reduced to OMR50 from OMR1,000.
Similarly, cuts ranging from 17 per cent to 60 per cent have been effected by the Ministry of Heritage and Tourism, across 29 services. The cost of a tourist guide licence has also been cut from between OMR15 and OMR100, to between OMR10 and 50, while fees to set up a heritage hotel, eco lodge or guest house has been cut from OMR500 to OMR250.
Municipalities in Oman have reduced and cancelled fees for 489 services. While the fees for the same services were previously different across the municipalities, these have been brought down to OMR25 for Muscat Municipality and OMR5 for other municipalities. Licences for commercial vehicles will also no longer be handled by municipalities, instead, they will come under the Royal Oman Police.
“The reduction and cancellation of these fees came into force at the beginning of January 2022, after approval was given on 9 November 2021, by His Majesty Sultan Haitham bin Tarik,” explained an official from the Ministry of Finance.
The service pricing guide targets a wide range of stakeholders in the government administration, as mentioned under Royal Decree No. 75/2020. Entities that are compulsorily required to follow the government service pricing guide are called “obligatory entities”.
These include ministries, agencies, councils, and other government bodies. “Non-binding bodies” are those that are not obligated to follow the regulations of the guide, such as state-owned companies, pension funds, investment funds, and free zones.
The media plan for the government services pricing guide aims to highlight the initiatives of the Ministry of Finance, spread awareness about the guide, introduce guide framework and changes in fees, ensure that the state administrative apparatus adheres to the framework, speed up the review of fees according to the approved time plan and build trust between the public and government.
The principles of the government services pricing guide focus on achieving transparency in service pricing and service delivery procedures, imposing fees on services that add value to the customer and are in public interest and making sure that services are provided at the same price to all people, barring certain exceptions.
The pricing guide also seeks to provide to its beneficiaries services that are in line with the rest of the world, looks to privatise services wherever possible, achieve rationalisation of spending, simplify fee structures, strike a balance between the cost of services and competitiveness and raise the efficiency of services provided.
The objectives of the pricing policy include support to economic development and financial stability in line with Oman Vision 2040 and removal of obstacles to the entry of the private sector and investors into the market and improve the competitiveness of the business environment.
The policy also aims to create a balance between pricing, quality of services provided, and the level of competitiveness of services provided to applicants. Steps required to achieve this include a unified approach towards government fees, sharing information regarding policies and procedures with the public and providing easier access to government services for customers by reducing the number of procedures, related costs and investing in modern technologies.
“Revised fees included in the second phase of implementation of the government services pricing guide will be announced once they have been approved,” added the Ministry of Finance official.
“The revision of fees aims to support Oman’s orientation towards building a better business environment, making it more attractive for investments, and encouraging the private sector to expand by reviewing and rationalising the costs of current fees and tracking the steps our beneficiaries take to make use of our services so that we understand how to make them better.”
