Hidden trade law to help companies in Oman

Muscat: A draft law on hidden trade will help companies to plug the existing loopholes and ensure more jobs for citizens.
Hidden trade occurs when a company is owned on paper by an Omani national but, in truth, is run by someone else. Such a person does not create employment for the workers of this company and instead tells them to go out and find their own jobs, while still being contracted to this company. It is a process that sees the company owner reaping profit at the expense of the workers.
The draft of this hidden trade law has now reached the State Council, whose economic committee has already read through it, and is now drafting a list of recommendations that this draft law might benefit from.
“We added amendments that would help contribute to the service of the national economy, and achieve a balance between supply and demand in the market, while at the same time integrate hidden trade into the formal economy in order to create job opportunities for citizens and achieve more revenue for the state,” explained Mohammed bin Abdullah Al Harthy, the head of the Economic Committee of the State Council.
“Hidden trade is often done through records or licenses of citizens who do not have the necessary qualification, attitude or time to carry out their activities,” he added.
“He therefore unfortunately sometimes places his goodwill and excessive confidence in an expatriate, but he is then subject to many obligations and debts, sometimes without his knowledge. A mechanism is now being put in place to stop taking advantage of such a situation, and those who engage in hidden trade will be subject to penalties for violating the system.”
Explaining the punishments that would be meted out to companies under this law, Nahla Al Hamdi , the deputy head of the Economic Committee of the State Council, said, “The punishment for hidden trade is provided in the law and varies between cases, ranging from fines to criminal cases. A specialised committee shall undertake procedures to consider cases of hidden trade referred to it and take this to the Public Prosecution.”
The chairman of the State Council, Dr Yahya bin Mahfoudh Al Manthri, said that this law would be in keeping with the plans for the country devised by His Majesty Sultan Haitham bin Tarik, who in his recent address to the nation, stressed the importance of providing more job opportunities to the youth, improve the quality of education, address the concerns of the citizens, and simplify the procedures required to set up employment in Oman.
“His Majesty stated in his speech, on February 23, that it is the public responsibility of everyone to be committed and no one is exempted from playing their role in their individual field, to the best of their ability,” explained Al Manthri. “Oman has established its civilisational presence with the sacrifices of its sons. Their precious efforts have preserved its prestige by efficient performance of their national duties with dedication and by placing their loyalty in national interests over personal interests.”
“The State Council with all its committees and competent organs will adopt this high value speech as guideline for its work and future activities, and contribute with other state institutions to elevate the Sultanate to the level of His Majesty’s aspirations and the aspirations of his loyal people,” the Majlis Al Dawla chairman said. “We dedicate our actions to our homeland, leader and people, as we ask God Almighty to guide us to achieve success.”
A statement on the draft law was presented by Mohammed bin Abdullah Al Harthy, the head of the Economic Committee of the State Council, and explained that the preparation of the draft law came within the framework of implementing the recommendations of the small and medium enterprise (SME) development symposium held in Saih Al Shamikhat in Bahla Wilayat in 2013.
Explaining the contents of the draft law on hidden trade he said, “The draft law contains 19 articles divided in three chapters: definitions and general provisions, control, and disposal of violations, in addition to penalties. The Economic Committee has prepared a memorandum on the draft law aimed at diagnosing the hidden trade scenario to determine the extent of the need to issue this law, in the presence of the laws and procedures referred to, and the possibility of activating them.
“The Economic Committee concurs with the issuance of the draft law in line with the direction of the government after modifying and adding new materials to ensure that the returns from its application will be greater than the cost of its application, and that it has a positive impact on the economy,” added Al Harthy. “The project also needs to include a precise definition of the concept of hidden trade and policies to curtail it.”