Muscat: A 35 per cent tax on petrochemical firms has been approved and tax on LNG firms has been increased from 15 per cent to 55 per cent in a joint session of Majlis Al Shura and State Council, a shura member confirmed.
Also read: Joint council votes for tax increase in Oman
“The tax on petrochemical firms and increase in LNG firms’ tax has been approved,” Tawfiq Al Lawati, the Majlis Al Shura member said.
The tax on producers of liquid natural gas is currently 12 per cent.
In January, the Oman government unveiled its OMR3.3 billion deficit budget with a series of spending cuts and tax hikes to offset decreased revenues following the drop in oil prices.
Oman posted a budget deficit of OMR4.5 billion in 2015, as revenues declined by more than 50 per cent. In the report, the IMF said that despite the robust actions taken so far, the sustained decline in oil prices has adversely affected Oman’s economy.