Real estate sector crucial for economic diversification

With respect to the Sultanate’s efforts to diversify income sources and increase non-oil income, the real estate sector is crucial and can provide the state’s treasury with a lot of money in the coming years. Because of unknown reasons, however, its contribution to the national income remains weak compared with the other sectors. There should be efforts to raise its contribution to the economy, and one of the steps that should be taken is to classify buildings that have more than 10 flats (considered personal property) as corporations, and tax them like any other corporations whose funds exceed RO 30,000.

There is a huge difference between a building whose profits go directly into the pockets of the owner, and a company that aims at achieving something, to add a service, employ people, motivate the market, and bring far more other benefits. This requires a new legislation.

There is no doubt the real estate sector and its employees get the highest benefits in the country. They are among the richest. In return, the contribution of the building owners is worthless economic sector that contributes to the national income. It should pay more, not just the rental fees to town hall. They should pay taxes.

There will be burdens that will result from taxation, but paying taxes is the least that buildings with an annual income more than RO 30,000 can do to help the economy, as the country has helped them build big properties.

They have benefited from a wide range of advantages. For example, the government gave them lands that are worth millions, and other services.

There is no doubt such ideas and resolutions will give rise to different reactions; building owners will resist in the beginning and object. However, they must consider the public interest and contribute positively to increase the non-oil income in order for the government to continue development services needed by the homeland and citizens.

We hope the country legislates the framework of taxation on buildings whose profits exceed RO 30,000. The nation’s financial resources must be strengthened so that development can take place.