Oman to Impose New Excise Tax to Boost Gov’t Income

Oman Plans to Impose New Excise Tax to Boost Gov’t Income

Part of the allure in working in the Middle East is its unique taxation system (or the lack of it, at least back then). Because there’s no income tax to be deducted from one’s earnings, migrant workers have a considerably bigger take-home pay as compared to what they would earn from their home countries or elsewhere.

However, as the oil industry has taken a hit in recent years, many countries in the Middle East are now looking for adjunct sources of revenues by boosting non-petrol industries such as tourism and agriculture, and through the placement of indirect taxes such as value-added tax (VAT).

Oman Plans to Impose New Excise Tax to Boost Gov’t Income
Credits: Phillip Ingham | Flickr

Oman Looks to Impose New Indirect Tax to Raise Revenues

In this regard, Oman is set to impose a new tax on sugary drinks and tobacco products starting June 15, as the nation seeks to boost state revenues strained by years of low oil prices, as shared in a report by the Khaleej Times.

According to the update, a 100% excise tax will be introduced for tobacco products, energy drinks and meat, while a 50% tax will be applied on carbonated drinks.

According to Sulaiman bin Salim Al Aadi, director general of survey and tax agreements, the excise tax is a form of ‘consumption tax’ and is considered to be indirect taxes. Thus, the final charge is on the consumers, but it is collected in advance at a stage of the supply chain, notably through the business sectors.

Of note, Oman has been slow in implementing fiscal reforms aimed at limiting the widening of its budget deficit, while it has increasingly relied on external funding – through bonds and loans – to refill its state funds.

The sultanate earlier expressed its intention to introduce a 5 percent value-added tax back in 2018, but has been deferred ultimately, and is now expected to start by next year.

S&P Global Ratings noted in April that any further delays in implementation, along with a scenario of lower oil prices, pose downside risks to the assumption of narrower fiscal deficits relative to 2015-2017.

At the beginning of the year, the national government revealed that it expected its budget deficit to be 2.8 billion rials (USD 7.27 billion) this year, or 9% of the sultanate’s gross domestic product.

While the new law is expected to boost the government’s revenues, it will also promote a price spike in the country, which is ultimately shouldered by the consumers. However, we need to take a look at it in the positive, because the “indirect tax” the people will pay for what they consume, will ultimately keep the overall economy afloat, which benefits the residents themselves in the long run.

ALSO READ:   Oman Among 50 States Eligible for Visa on Arrival in Pakistan

Oman Among 50 States Eligible for Visa on Arrival in Pakistan

Oman Among 50 States Eligible for Visa on Arrival in Pakistan

Other than national benefits offered by the government to residents and citizens, there are also perks granted to citizens based on the homeland’s bilateral connections.

Other than its diplomatic relevance, citizens can also take advantage of immigration and travel opportunities offered by friendly nations, which would also contribute to economic and business growth in the long run. This just supports the fact that strong diplomatic ties can help boost a country’s economy, as well as its sub-sectors.

Oman Among 50 States Eligible for Visa on Arrival in Pakistan
Credits: IHMA

Omani Passport Eligible for e-Visa on Arrival in Pakistan

In relation to this, the Pakistan Embassy in Muscat has started giving Omani citizens visa on arrival as part of its e-visa initiative, as shared in a report by Muscat Daily.

Regarding this development, the Pakistan Embassy in Muscat has also revealed visa charges for their visa on arrival scheme.

Shah Mahmood Qureshi, the Foreign Minister of Pakistan had announced the details of the e-visa initiative to 175 nations in a meeting with the Pakistani community presided by Ambassador Ali Javed at Sultan Qaboos Sports Complex last January 30, 2019.

As per Qureshi, the Pakistani government, wisely led by PM Imran Khan has included Oman among 50 friendly nations eligible for the Visa on Arrival scheme, alluding to the depth of relations between the two nations.

Of note, the qualitative change in visa process, which has been put into effect since May of this year, can be viewed by accessing the official website of Pakistan’s Ministry of Interior. On this regard, travellers shall be expected to print, or save on their handheld devices, the ‘Electronic Travel Authorization’ (ETA), prior to departure. For any queries or concerns, applicants may reach out to the Ministry of Affairs by email.

The simplified fee structure is as follows:

Visit/Tourist:

Single Entry: OMR 10

Multiple Entry (one year): N/A

Multiple Entry (2 to 5 years): N/A

Family:

Single Entry: OMR 10

Multiple Entry (one year): OMR 15

Multiple Entry (2 to 5 years): OMR 20

Work/Business:

Single Entry: OMR 39

Multiple Entry (one year): OMR 58

Multiple Entry (2 to 5 years): OMR 77

Transit:

Single Entry: OMR 5

Multiple Entry (one year): N/A

Multiple Entry (2 to 5 years): N/A

Being the closest Gulf country to Pakistan, Oman shares warm and cooperative ties with the former. Aside from economic relations, the two also share militarily ties, with joint exercises and defence procurement on their agenda.

ALSO READ: Oman to Introduce Expat Visa Ban for Senior Management Roles

Gulf Country Announces Mid-day Work Ban for Workers

Gulf Country Announces Mid-day Work Ban for Workers

The summer season is upon us, and for countries where temperatures can exceed past 40 degrees during the day, such as those in the Middle East, there is more harm than benefits in sending labourers to work outside in the sun.

ALSO READ: [Labour Law] Workers are Entitled to Two Days Off Every Week in Oman

This is especially true for workers who are involved in construction, mining, and maintenance work, who are typically exposed under the heat of the sun. On the part of employers, having sick workers can mean more expenses and loss of man hours at work, as well.

Gulf Country Announces Mid-day Work Ban for Workers

Oman Imposes Mid-day Work Ban for Workers for Health Risks

Given the nature of these types of work as well as the environmental factors in the region, the Ministry of Manpower in Oman announced that workers on construction sites and those engaged in manual labour in open areas will not be allowed to work for three hours from 12:30 pm until 3:30 pm during summer months, as shared in a report by the Khaleej Times.

The decision comes in consideration of workers’ safety who are needlessly exposed to the intense summer heat starting in the month of June until August.

“The Ministry of Manpower announces a ban on work on construction sites or open areas from 12:30 pm until 3:30 pm during June, July and August, to protect the health and safety of workers in these sites,” a ministry official was quoted.

As per Article 16-3 of the Labour Law, “workers cannot work in construction or open sites with high degrees of heat from 12:30 pm until 3:30 pm during June, July, and August of each year.”

The ministry official also explained, “Because of the high heat during these hours, it becomes important to protect workers from harming themselves in these high temperatures.”

Those who will be found to be in violation of this law will face fines ranging from OMR 100 to OMR 500, or, in some cases, a jail term of up to one month. The penalties can be doubled for repeat violations.

Moreover, the ministry also reaffirmed that it would intensify inspection campaigns at work sites as over 750 companies were found violating Oman’s mid-day break regulations in 2018, according to ministry figures.

Out of the 2,665 companies that faced inspection between June and August of last year, 771 were found to have committed violations. In August, 158 companies were found violating the rule, compared to 362 in July and 251 in June.

Given the climate conditions in desert countries such as Oman, it’s good to know that there are labour policies that protect workers against this crucial factor that could pose severe health issues in the long term.

ALSO READ:  Here Are 5 Reasons Why You Should Work in Oman

[GUIDE] Top Destinations to Visit in Oman

[GUIDE] Top Destinations to Visit in Oman

Oman is just unique a country as any is. However, the Sultanate is oftentimes overlooked by travellers. What escape the ordinary tourists’ eyes are the exotic and incredible attractions and cities the country has to offer.

ALSO READ: Here Are 5 Reasons Why You Should Work in Oman

In this brief guide, we will list some of the best destinations you can check out on your first (or next) trip to Oman.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons

Best Places to Visit in Oman

Oman is one of the most underrated places you can go to in the Middle East. There are actually plenty of desert landscapes, incredible mountain ranges, historic forts, and warm beaches to enjoy in this exotic country, depending on your kind of adventure or idea for a vacation. But, in this list, we give you several destination spots which are a “must-see” when visiting Oman anytime in the year:

[GUIDE] Top Destinations to Visit in Oman
Credits: DDERRICK | Flickr
Misfat al Abryeen

While most cities in the country have adopted a modern look, there are still those which have preserved their traditional atmosphere and quaint charm, such as the small village of Misfat al Abryeen. This mountain village is made of stone buildings in shades of orange and brown, and it can look more like an Italian mountain village than something you might expect to find on the Arabian Peninsula.

A closer look into the city and you would see what mountain life in Oman is. Tread a steep road towards the mountain and walk among buildings under the shade of banana trees and lush greenery. Also, be sure to check out the ancient watchtower above the village that you can climb to see Misfat al Abryeen, as well as the surrounding fields and dams filled with water.

[GUIDE] Top Destinations to Visit in Oman
Credits: Marlon Cureg/Flickr
Masirah Island       

Off the coast of Oman is the island of Masirah, which is an ideal place for travellers in search of sun, beaches, wildlife, and history. The island is home to an Omani air base, but the towns are relatively small. This generally means small crowds and plenty of secluded spots to explore. It’s quite easy to get to the place, since regular ferries are available to get you to and from the mainland. Some of the things you can enjoy on the island include swimming, checking out the abundance of shipwrecks just off the coast, and watching the more than 30,000 turtles that appear annually during hatching season.

[GUIDE] Top Destinations to Visit in Oman
Credits: Peter Dowley/Flickr
Bahla

Another great place to visit in Oman is the northern city of Bahla. A kind of desert oasis, Bahla has been a stopping point of travelers for centuries. The city prides in its historic fort, the Bahla Fort, which dates back to as early as the 13th century, when it was widely under the control of the Banu Nebhan tribe. Aside from exploring the Fort, visitors can also admire the city walls, which are made from adobe and stretch for nearly seven miles in length. There is also a souvenir market, where you can find an impressive selection of local pottery, which Bahla is widely known for.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Salalah

Down south, a city regarded as second to Muscat, Salalah remains relevant to this day because it is the ancestral home to the Sultan Qaboos, the reigning sultan in Oman since 1970. A visit to this city will give you a first-hand view of the Qaboos Palace, and appreciate older architecture in the Old Town, known as the Haffa. There’s even the unique Al Baleed Archaeological Site, which you can visit if you’re into history and cultural heritage spots. As Salalah is known for its frankincense trade, be sure to pick up a souvenir from the souk in Haffa. From June to August, however, monsoon clouds from India bring a constant rain to the area and, as a result, the coastal region around Salalah is transformed into a green oasis with seasonal waterfalls and streams.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Jebel Akhdar

Locally translated as “Green Mountain,” the Jebel Akhdar is a part of the Al Hajar Mountains. However, don’t be misled by the green description, as the region is primarily composed of limestone. The area also has the highest point in Oman. Furthermore, don’t expect to see lush forests, but the elevation makes for cooler temperatures and more agricultural growth than in the desert below. The area is now under protection by the local government, but you can hike through beautiful terraces and even spot trees laden with fruit. While hiking in the desert doesn’t seem to sound very appealing to most, visitors know that this is one of best pastimes in the region.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Ras Al Jinz

To the east of the Sultanate is Ral Al Jinz, where you can find a turtle reserve that helps to populate and protect the sea turtles of the Indian Ocean. When you visit the area during the summer, or between the months of May and October, you can spot turtle nests along the beach and even watch the baby turtles hatch and make their way to the ocean, pretty much like what you’d see in the Galapagos on the other side of the world. While a visit to this natural reserve is possible as part of a day trip from Muscat, most visitors opt to spend the night at the resort and check out other attractions like the Turtle Visitor Centre and Museum.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Musandam Fjords

The Musandam Peninsula is located in the northernmost region of Oman, and it is separated from the rest of the country by the United Arab Emirates. The Musandam Fjords stretch north and provides breath-taking sceneries. If you visit the Musandam Fjords, be sure to check out activities like boat trips to explore the coasts and peaks rising up from the water, spotting dolphins from a Dhow, or traditional Omani boat, and scuba diving out at sea. The area is sparse in human population but wildlife in abundance. Because of this, the region is considered as one of the best places to visit in Oman for nature lovers.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Nizwa

During the 6th and 7th centuries, the city of Nizwa served as the capital of Oman. Owing to this fact, the area still is widely recognized for its incredible fort, which was built in the 17th century under the direction of Sultan Bin Saif Al Ya’ribi, with some parts of the fort even dating back to the 9th century. The most iconic landmark in the city is the enormous cylindrical tower at Nizwa Fort. The fort, to this day, has some interesting defence mechanisms, including honey traps and unusually shaped windows for shooting approaching enemies. The fort has also become a museum, where you can explore 17th century life in Oman. When in Nizwa, you need to check out the souq (outdoor market), as well as the unusual goat market held two days each week in the city centre.

[GUIDE] Top Destinations to Visit in Oman
Credits: Wikimedia Commons
Muscat

If you’re pressed for time during your stay in Oman, and can only afford to explore one place, it would have to be the modern capital city, Muscat. The city is a combination of traditional and modern amenities such as forts, palaces, museums, and markets. While you can’t visit the interior of the Qasr Al Alam Royal Palace, you can head over to the harbour to get a close view of the amazing structure. Guarding the palace are the twin forts of Al Jalali and Al Mirani, which have been converted into museums and are now accessible to the public. Non-Muslim travellers can also check out the Sultan Qaboos Grand Mosque on most mornings, where they can admire huge crystal chandeliers, marble wall panels and the second largest Persian carpet in the world.

The beauty in visiting a country like Oman is that not much is known about the country, and so you’re experience can only be the most authentic as it can get. And while you’re at it, be sure to take pictures (where it is allowed) and to spread your travel experience in the country!

ALSO READ:  Oman to Introduce Expat Visa Ban for Senior Management Roles

[Labour Law] Workers are Entitled to Two Days Off Every Week in Oman

[Labour Law] Workers are Entitled to Two Days Off Every Week in Oman

Working from one place to another exposes us to the differences in work culture and labour codes between countries.

ALSO READ: Here Are 5 Reasons Why You Should Work in Oman

Therefore, it is important for us to get into the details of our employment contract as well as to gain understanding of the labour law that applies in the host country’s workforce to set proper expectations. Whatever is mandated under the Labour Code must be observed by all companies in the country. Any deviation from the law can be questioned or verified with concerned agencies or departments.

[Labour Law] Workers are Entitled to Two Days Off Every Week in Oman

Two-Day Weekly Off Mandatory for Workers in Oman

Regarding rest days, the Labour law mandates all employees in the Sultanate of Oman to have at least two consecutive rest days after working continuously for five days.

This provision is based on Article 71 of the Labour Law, as observed by the Ministry of Manpower.

Since 2011, private sector employees in Oman have been enjoying a five-day work week following the amendments to the Labour Law.

However, workers in domestic services such as drivers, maids, cooks and those with similar jobs are excluded from this law. The Labour Law states that the Ministry of Manpower shall issue general guidelines and terms of work related to these categories.

Furthermore, the accumulation of weekly rest periods for not more than eight weeks may be permitted by the minister in respect of certain places of work specified by the minister, if the employer and the employee agree to this in writing.

The law also maintains that the weekly rest, in all cases, shall be payable.

Experts, on the other hand, expressed that employees can be required to work six days per week, granted that this is clearly stipulated in the contract, and that the worker be paid double their daily basic salary for the sixth day, or given an extra day of annual leave in compensation for every sixth day worked.

According to Article 68 of the Labour Code, an employee may not be required to work for more than nine hours a day and a maximum of 45 hours a week with at least half-an-hour breaks for food and rest.

Furthermore, the maximum work hours during Ramadan shall be six hours a day or 30 hours per week for Muslim employees.

The work hours must also be separated by one or more intervals (breaks) for having food and rest, the total of which shall not be less than half an hour.

Workers must not be required to perform continuous work exceeding six hours in a day. However, an employee may be required to work for more hours if the interest of work so dictates provided the total original and extra work hours do not exceed 12 hours a day as recommended by the law.

Also, the employee shall be paid overtime pay equal to his basic salary against the extra work hours plus at least 25 percent for day-time work and 50 percent for night work or allow the employee to work extra hours provided he agrees to it in writing.

As for those working in certain places such as ports, airports, on vessels, ships or aircraft, the law states that the employer and the employee may, after securing the approval of the ministry, agree on payment of a fixed allowance for employees in lieu of the overtime payments, provided an approval is issued by the ministry upon notice.

Disclaimer: The topic discussed in this post was published for information-sharing purposes only. Should you have any specific queries or concerns regarding the Labour Law and/or your employment contract, you may get in touch with an officer from Oman’s Ministry of Manpower via their official website.

ALSO READ: Oman to Introduce Expat Visa Ban for Senior Management Roles

Oman to Introduce Expat Visa Ban for Senior Management Roles

Oman to Introduce Expat Visa Ban for Senior Management Roles

With oil prices taking a hit in recent years, many GCC member countries have started to explore alternative forms of revenue, such as building up other sectors like tourism and education, and then there’s the proposal to impose the value added tax – something that has long been non-existent in the Middle East, which is also one of the main reasons why many expats opt to expand their careers in the region.

ALSO READ: Here Are 5 Reasons Why You Should Work in Oman

However, as national revenues start to go down, governments could no longer support the social system they cater to, and this creates a situation requiring citizens to pay out of their pockets more to avail basic services. And for this to happen, every citizen needs to have a job. However, going back to the system wherein countries have long been dependent on foreign labourers to power an economy, we all know that something has got to change soon.

Oman to Introduce Expat Visa Ban for Senior Management Roles
Credits: jurvetson/Flickr

Senior Management to Get Affected by Expat Visa Ban in Oman

In line with this, the government of Oman is looking to extend its expat visa ban once again, but this time, senior management positions in the private sector will be affected as the country continues to push its Omanization policy in a bid to cut unemployment among its citizens, as shared in a report by Arab News.

Under the new provisions of the law, those expats currently working in the specified roles will be able to work until the end of their current residency visas, but will not be able to renew them, as the roles will be entirely delegated to Omanis.

The specified roles as per the Ministry of Manpower include assistant general manager, administration director, human resources director, personnel director, training director, follow-up director, public relations director, assistant manager, and all administrative and clerical duties.

However, the report did not specify how many of the current 37,299 managerial and administrative roles would be given to Omani nationals.

The expat visa ban has been adopted by Oman in January 2018 for a six-month period for certain professions.

Since then, there have been several extensions on the ban, and it has been expanded to cover other industries and professions, which enabled tens of thousands of Omanis to find work.

Historically, Gulf countries have been dependent on expatriate workers to support their economies; with a 2013 study indicating as much as 71% of Oman’s labour force were foreign-nationals.

Since the introduction of the expat visa ban, Oman’s expat population has dropped significantly, which is also a trend noted in other GCC countries with nationalization programmes such as Kuwait and Saudi Arabia, among others.

ALSO READ: 6 Things to Know when Visiting the Middle East

Here Are 5 Reasons Why You Should Work in Oman

Here Are 5 Reasons Why You Should Work in Oman

To the majority of people, the Middle East is considered a collective destination, where plenty of misconceptions are based on. Unfortunately, while many have been there, only few are able to shed light on the diversity and opportunities that await travellers and foreign nationals interested in visiting any place in the Middle East.

ALSO READ: Keeping an Employee’s Passport is Against the Law

For one, a country such as Oman deserves more credit than it actually gets from what we hear (or the lack of it) on the news. And for this post, we will share with you some of the top reasons why Oman is an ideal place to work in.

Here Are 5 Reasons Why You Should Work in Oman

Why You Should Work in Oman

To start off with the question “why should you consider working in Oman?” The answer is quite simple: much is not known in this Gulf country, but it is among the top five best places (in the GCC) for expats to live in and 17th in the world, as released by global expat service and guide website InterNations back in 2017.

The overall rankings were based on parameters such as the quality of life, ease of settling in, job prospects & work-life balance, family-friendliness, among others.

With that said, here are five reasons why every expat should at least consider getting a job in Oman for their next career move:

  1. There is no scarcity of jobs in Oman.

As you would expect being part of the GCC, Oman’s economy is heavily dependent on its oil sector. And so, there will always be plenty of jobs available in this sector, including specialist roles to help further maximize the country’s natural oil reserves.

Furthermore, as the government begins to explore various initiatives to diversify its economy by investing in other sectors such as construction, education, healthcare and tourism, there are still plenty of vacancies to be filled in these sectors as well.

  1. Salary packages in the country are very attractive.

Working in the Middle East offers tax-free income, which also applies in this Gulf State. And other than the attractive salary package, what makes working in Oman even better is that the cost of living in this country is relatively lower than the cost of living in other GCC countries such as the UAE and Kuwait, which makes it easier for expats to adapt and earn more for their families back home.

  1. Oman is among one of the world’s safest places to live in.

In the same survey conducted by InterNations, Oman landed on the 9th spot in the world in terms of the ‘Safety & Security’ parameter, which basically says how much of a safe place Oman is, not only in the Middle East but across the globe. Moreover, citizens of Oman are friendly, polite, well-mannered, and are quite good at making foreigners feel welcome in their country.

  1. Oman is inspirationally beautiful.

Living in Oman is like living in a holiday paradise because everywhere you look, there’s something breathtakingly beautiful to take in, such as a beautiful coastline, turquoise-coloured waters, pristine white sandy beaches, rugged mountains, and a seemingly never-ending golden desert. And with this kind of environmental resources, you also are exposed to various opportunities and activities, such as scuba diving, hiking, paddle boarding, kite surfing, camping, off-road driving, etc.

  1. Getting to other destinations is easy from Oman.

Oman is situated in the map, which provides easy access to other parts of the Middle East, Asia, Africa, and Europe via air transport. And because of this proximity, traveling to other choice destinations is possible to achieve in a day or even a couple of hours. And with a great salary package, expats living in Oman can enjoy lots of travel opportunities without having to burn a hole in their pockets.

And because a large percentage of people working in Oman are foreign residents, the place is also some kind of a melting pot of various cultures and colours. Therefore, joining a community or making friends should not be a problem for you when living in Oman.

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