News

Previous Next

State Council acclaims the Royal directives to establish the Job Security Fund and issue its system

• State Council submits to HM the draft on amending the Income Tax Law and discusses VAT 

Today, the State Council forwarded to His Majesty Sultan Haitham bin Tariq, the draft “Amendment of the Income Tax Law”, with the opinion of the two councils. 

The Council also discussed the draft law on "value added tax (VAT)" referred by the Council Of Ministers as a matter of urgency and the report of the Council's Economic committee about it. After the discussion, it was decided to return the draft law to Majlis A’Shura to consider the articles subject to identify any discrepancy between the two Councils on it.

This came during the tenth ordinary sitting of the first annual session of the seventh term  held by the Council today, chaired by HE.Dr.Yahya bin Mahfoudh Al-Manthri, State Council Chairman, in the presence of the honorable Council members and the Secretary-General of the Council, along with the participating members  via video conferencing.

At the outset of the sitting, the Council  Chairman delivered a speech welcoming the honorable members, reviewed  the agenda, and stressed  that the sitting was devoted to discussing the draft for the amendment to the Income Tax Law referred by the Council of Ministers as a matter of urgency, the report of the Economic Committee of the Council on it, and the draft Value Added Tax Law (VAT) referred by the Council of Ministers as a matter of urgency and the report of the Economic Committee of the Council on it.

During the sitting, the Council appreciated the noble directives of His Majesty Sultan Haitham bin Tariq - may God protect him - issued to establish the Job Security Fund and issued a decree approving its system, working mechanisms and financing, noting in this regard that the fund significantly symbolizes social solidarity that characterizes Omani society. He stressed that the fund will play a tangible role in identifying practical and effective solutions for Omanis whose services have been terminated, and that it will also contribute later in helping job seekers.

The Council also praised the tireless efforts exerted  by the Supreme Committee in charge of examining the mechanisms of dealing with developments resulting from the spread of the Coronavirus (Covid 19) to address the pandemic in light of the good results achieved in implementation of the generous directives of His Majesty the Sultan. The Council wished for further continuation of citizens and residents adherence to the precautionary and preventive measures in a manner that ensures efficient tackling of the Corona virus and prayed to God Almighty to protect the country and its people from all evil and harm.

The Council began its discussion of the draft for the “amendment of the Income Tax Law" with the statement of the Economic Committee. Hon.Sheikh Mohammed bin Abdullah Al Harthy, Economic Committee Head, explained that the proposed amendments to the Income Law come within the framework of the Sultanate's accession to a number of international agreements on tax affairs.

Pointing out that joining these agreements requires establishing provisions of the internal legislations that include specifying the data to be disclosed and the obligations due and protecting the confidentiality of data that are exchanged with the tax authorities in other countries for the purposes of implementing the agreements.

Pointing out that these amendments will enable the tax authority to exchange tax information with other countries in accordance with the specified legal framework.

During the extensive discussions on the draft law amending the law, the honorable members expressed their views and observations on its articles.

Following this, the Council commenced with the discussion on the draft of VAT Law referred by the Council of Ministers and the report of the Economic Committee about it. Hon.Sheikh Mohammed bin Abdullah Al Harthy, Economic Committee Head indicated that the Supreme Council of the Cooperation Council for the Arab States of the Gulf decided in its thirty-sixth session held in December 2015 to impose a value-added tax in a unified manner for the GCC countries, at a rate of 5%, to be imposed on the import and supply of goods and services transactions at every stage of production and distribution.

Hon.Sheikh Mohammed bin Abdullah Al Harthy, Chairman of the Economic Committee, highlighted the most important articles of the draft law, explaining that the committee agreed with the opinion of Majlis A’Shura on the principle of availability of basic standards before starting the implementation of the tax and the need to provide the appropriate environment for the implementation of the draft law.

The honorable Council members elaborately discussed the articles of the draft law, expressed several observations and proposals about it, which would contribute to enhancing state revenues.

The Council approved the minutes of the ninth Ordinary Sitting of the first annual session of the seventh term, and viewed the report of the General Secretariat pertaining to the Council’s activities between the previous sitting and the present sitting.