‘VAT awareness’ vital ahead of introduction’

Muscat: “Awareness is a must before imposing Value Added Tax (VAT),” the head of Oman’s top authority for regulating taxes
has said.
Salim Al Adi, Director General of Inventory and Tax at the General Secretariat for Taxes, made the comment at a VAT seminar at the Oman Chamber of Commerce and Industry (OCCI).
Al Adi said: “The government will apply no taxes on medicines, education, health, food, commodities, and parts of the transport and housing sectors. All parties must be prepared.”
With regards to where the income from VAT should be directed, Saleh Musin, head of the Economic Committee at Shura Council, said, “Tax revenues should be directed to public services and to reduce the income inequality among the members of the society.”
“If VAT is imposed, it will hit the middle-income class hard, whose wages range between OMR300 and OMR600, which constitutes 60 per cent of the community. I believe that we need a full tax reform and not just a partial one,” Musin added.
The seminar at Oman Chamber of Commerce and Industry looked at the motives, objectives and potential impacts of VAT on the economy and on development. It also considered the positive and negative aspects of its implementation.