The national budget for 2021/22 contained a number of tax proposals, including an increase in the standard rate of VAT from 12% to 14% from 1 April 2021, and the introduction of a sugar tax from 1 April 2021 and a tax on plastic bags from a yet-to-be announced date.
On 5 January 2021, the Gulf Cooperation Council member states and Egypt signed a “solidarity and stability” agreement, accompanied by statements from Bahrain, Egypt, Saudi Arabia, and the UAE that they would restore full diplomatic relations with Qatar.
The 2021/22 union budget included a number of indirect tax proposals, including an expansion in the scope of the equalization levy and the rationalization of customs duty to eliminate certain exemptions and phase out conditional exemptions.
VAT will be implemented in Oman on 16 April 2021, and businesses and individuals should ensure they are registered for VAT and prepared for compliance. The VAT registration process commenced on 1 February 2021. VAT return filing obligations will begin as from April 2021.