Muscat-In late December, the State Council convened, under the leadership of His Excellency Sheikh Abdulmalik al Khalili, to deliberate on the draft of the Personal Income Tax Law.
Opening the session, H.E. Khalili reaffirmed the council’s dedication to its national responsibilities. He underscored the “significant role played by council members in achieving their objectives” through thorough discussions on pivotal legislative issues.
At the heart of the meeting was the draft Personal Income Tax Law, which had been put forward by the Council of Ministers. This legislative proposal, developed by the State Council’s Economic and Financial Committee, is identified as one of the most notable initiatives currently under consideration by the council during its ongoing term.
The committee shared the central goals of the proposed legislation, which aim to diversify Oman’s income streams, decrease reliance on oil revenues, and foster a fairer distribution of wealth among various social groups. Additionally, it seeks to enhance the government’s capacity to fund social protection programs and combat tax evasion effectively.
Council members examined the potential ramifications of the law on both the economy and society, with the committee emphasizing the importance of a balanced approach. They committed to a thorough assessment of the bill, aiming to evaluate its advantages and drawbacks prior to finalizing any decisions. The session also included a review of the Majlis a’Shura’s opinions regarding the draft legislation.
While the State Council concurred with several provisions proposed by the Shura, it expressed differing views on specific articles. To reconcile these differences, a joint committee will be established between the two councils, tasked with facilitating further discussions in a collective session.
The proposed Personal Income Tax Law is considered a crucial component of Oman’s broader economic reform agenda, which aims to achieve fiscal sustainability and diminish reliance on oil-derived revenues. By instituting a personal income tax, the government aspires to cultivate a more resilient and diversified economy while bolstering initiatives for social welfare.
