Oman workers’ federation issues statement on VAT

Muscat: The General Federation of Oman Workers (GFOW) has issued a statement regarding value-added tax (VAT).

A statement issued online by General Federation of Oman workers said, "The General Federation of the Sultanate's Workers said that it is following with great interest and urgency a draft value-added tax law with the relevant authorities, and the positive effects of this tax will create new revenues for the government and provide cash liquidity, which will directly contribute to finding new job opportunities."

"The Federation stressed the importance of slowdown in starting the implementation of the tax, as its implementation in the current period has negative effects that directly affect the lives of citizens and workers in the private sector in particular, given the low wages of a large segment of them."

The Federation added, "It is necessary to develop a comprehensive study on the situation of workers in the private sector in partnership with the relevant authorities before the enactment of the tax law."

"Determining the date of its application, in order to set up appropriate mechanisms and solutions that reduce the risks and negative effects of the tax, like providing support to low-income private-sector workers and excluding the goods and services covered by the tax, such as basic food items, services, education, and health care."