MUSCAT : Oman has no plans at present to increase its value added tax (VAT) rate or introduce new taxes, a senior official said, seeking to reassure businesses and consumers amid questions about future fiscal measures.
Said Al Shanfari, Director General of Tax Policies at the Tax Authority, said any decision to raise, reduce or abolish taxes is a government-level policy matter taken in coordination with relevant authorities and based on detailed studies assessing economic impact.
“There is currently no direction to increase or decrease the VAT rate,” Al Shanfari said during a media briefing organised by the Tax Authority. Oman’s VAT rate stands at 5%.
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He added that the Tax Authority acts as an implementing body, and any changes to tax rates would only be made following careful evaluation of the need for such adjustments and consultations with concerned stakeholders.
The Tax Authority said tax revenues reached 1.3 billion Omani rials ($3.38 billion) in 2025, meeting state targets set under the government’s revenue estimates for administrative units.
Tax compliance also improved sharply, with the number of tax returns filed rising 37% from the previous year. Around 353,000 tax returns were submitted in 2025, reflecting stronger voluntary compliance among taxpayers, the authority said.
Oman introduced VAT at a rate of 5% in April 2021 as part of broader fiscal reforms aimed at diversifying state revenues and strengthening public finances.
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