Muscat: The Tax Authority has announced three new administrative decisions aimed at reducing living costs, supporting vital sectors and strengthening Oman’s social protection framework by expanding the range of goods subject to zero per cent VAT.

The decisions cover essential food items, medicines and medical equipment for human use, and veterinary medicines and medical supplies. All three measures will come into force from October 1.

According to the Tax Authority, the decisions form part of Oman’s efforts to ease financial burdens on citizens and residents while supporting key sectors including healthcare, agriculture and livestock.

Under the first decision, a broad range of basic food commodities will be subject to VAT at a zero per cent rate.

The list includes livestock and live animals such as cows, sheep, goats, camels and poultry intended for breeding, slaughter or milk production. It also covers beef, lamb, goat, camel and poultry meat in fresh, chilled, frozen and minced forms.

A wide range of live, fresh and frozen fish and seafood is also included, alongside key dairy products such as long-life and evaporated milk, yogurt, labneh, butter and different varieties of cheese.

The decision further covers table and hatching eggs, fresh and dried fruits and vegetables, legumes, coffee, tea, spices and seasonings.

The new decision replaces Administrative Decision No. 65/2021 and supersedes any provisions that conflict with the updated framework.

The second decision focuses on supporting the healthcare sector and improving access to medical and pharmaceutical products at affordable prices.

It stipulates that medicines, herbal remedies, biological and health products, foods for medical use and medical equipment will be subject to zero per cent VAT, provided they have received a release permit from the Ministry of Health in accordance with the approved customs tariff codes.

The list includes antibiotics, hormones, vaccines, blood serums, infant formula, foods designed for specific medical conditions, medical solutions, oxygen gas, dental products and smoking cessation aids such as patches and inhalers.

This decision replaces Administrative Decision No. 59/2021 as part of efforts to unify the regulatory framework.

The third decision is aimed at supporting the agriculture and livestock sectors and reducing costs for breeders and companies operating in the field.

It provides for zero per cent VAT on specified veterinary medicines and medical equipment, provided a release permit is issued by the Ministry of Agriculture, Fisheries and Water Resources in line with the relevant customs codes.

The list includes veterinary vaccines and serums, biological toxins, antibiotics such as penicillin and streptomycin, vitamins, minerals and nutritional supplements, as well as solutions, gels and equipment used in veterinary examinations and procedures.

The Tax Authority said all goods covered by the three decisions are listed in attached annexes according to the unified customs tariff codes, helping clearly define the products eligible for the zero per cent VAT rate and facilitating implementation.

The new measures will take effect from October 1.