VAT implementation should be slowed down: Workers’ federation

MUSCAT: Implementation of the Value-added Tax (VAT) should be slowed down keeping in mind the current economic climate, said the trade union body.

The General Federation of Oman Workers (GFOW) said it has been studying the draft Value-added Tax (VAT) law, including its benefits such as offering new revenue sources for the government with increased liquidity, which will directly contribute to finding job opportunities.

GFOW stressed at the same time the importance of slowing down the application of the tax as in the current situation.

It will directly affect the livelihood of citizens and workers in the private sector in particular, given the low wages of a large segment of the workforce. GFOW said there is a need for 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 and setting a date for its implementation, so that appropriate mechanisms and solutions can be established that limit the risks and negative effects of the tax.

It also called for providing support to the low-income private-sector workers and excluding goods and services that are included in the tax, such as basic foodstuffs, services, education and healthcare for this category. With government plans for launching the Value-added Tax at the beginning of 2021, Majlis Ash’shura too discussed the VAT draft law, referred by the Council of Ministers as a matter of urgency.