Oman's income tax decision draws support and scrutiny

Zawya

7 days ago

Starting 2028, Oman will introduce a 5% personal income tax on high-income earners, marking a first in fiscal policy not just the in sultanate but the GCC. The decision is part of broader efforts to diversify revenue sources and reduce dependence on oil. The move has sparked a discussion among citizens and residents alike. Here is what Muscat Daily readers said –
Fatma al Harthy, Businesswoman
I think it's a fair step. High-income earners can contribute more to the country's growth. As long as the system is transparent and benefits are visible – like better healthcare, education and infrastructure – I support it. Oman is evolving, and we must be financially sustainable in the long run.
Ahmed al Saifi, Private sector employee
Introducing a 5% income tax on the wealthy is a balanced move. Many countries do this already. It won't impact daily life much, but it can help reduce dependence on oil. I hope the revenue is reinvested in youth programmes, innovation and job creation.
Salma al Balushi, Homemaker
It's the right time to prepare for the future. With oil prices being unpredictable, we need steady income sources. This tax seems reasonable and limited to those earning more. It shouldn't affect average citizens. What matters is ensuring accountability in how this tax is used.
Anish Menon, IT professional
As a long-time resident, I respect Oman's strategy. A 5% tax on high earners is modest compared to global standards. It could help build a better economy. It will be also good to diversify the economy. I welcome the move.
Yaqoob al Rawahi, Businessman
It has its pros and cons. One of the main downsides is that high-income earners will start looking for other competitive countries – either with lower taxes or no taxes at all. The upside, however, is when taxes are used to support and develop sectors like startups and small businesses. But speaking from my perspective in Oman, I see it more as a negative because so far, the allocated funds and resources for supporting startups are extremely limited and discouraging. This will only push more investors to move towards competitor countries with fewer or no taxes.
Aisha al Hafeez, Business development associate
As limited as this target demographic of high-income earners currently is, this system still has some potential of working in our favour, especially with the rise in high-income expatriates arriving in Oman. I recognise the outcome it could have on increasing revenue without pressuring Omani residents to feel burdened by this tax rate.
Lakshmi Joshi, Bank professional
Since the tax only affects individuals who consistently earn an annual salary that exceeds approximately RO42,000, I think it presents a unique solution to strengthen our country's overall GDP. This could also make Oman more competitive given the rising trend of international investors moving into the country.
Tarun Joshi, Businessman
I understand the logic. The cost of maintaining services and infrastructure is rising. High-income earners can afford to contribute a bit more. It's essential though that the tax system is transparent, and businesses like ours are supported by the government and private sectors.
Vijay Dixit, Sales officer
I personally believe that the upcoming income tax could present the Omani government an opportunity to test out this new system among high-earners within the country while also giving our government additional revenue, thus minimising our dependence on oil revenue.
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).