MUSCAT: Oman is currently studying various plans to introduce an income tax on high earners, the country’s Minister of Finance has confirmed on Wednesday.
His Excellency Sultan bin Salem Al Habsi, however, did not reveal the date of implantation but said such a step would help the social protection system. “We are currently studying imposing an income tax on high-income earners in order to support the social protection system. When we are ready, it will be announced in due time,” Al Habsi said during a media briefing.
The discussion about imposing income tax on high-earners first came in November 2020 when the Finance Ministry said in its 2020-2024 mid-term economic plan that it is planning to impose an income tax on high earners.
“At that point of time Covid-19 was at its peak and the economy was hit due to low oil prices but we are seeing a much-improved situation now in the country but income tax on high earners will certainly do good to the social protection plans,” said an official at the Ministry of Finance speaking to The Arabian Stories.
Oil prices have reached their highest levels since 2008 recently in response to the Russian invasion of Ukraine, briefly trading above $100 a barrel from March 2022 onwards. Meanwhile, the state’s general budget by the end of 2021 achieved an increase in actual revenues by 26.9%.