Banking on tax to move beyond oil


A file photo of Muscat, the capital of Oman, from March 24, 2023. Officials said a new tax there would affect only a small portion of the population but would help reduce the country’s dependence on oil and gas. — Andrea DiCenzo/The New York Times

THE concept of an income tax has long created debate and anxiety among the citizens of the fossil fuel-rich countries in the Persian Gulf.

But no nation actually introduced one until last month, when Oman announced that it would apply a 5% tax starting from 2028 on those who make more than 42,000 Omani riyals (RM462,088).

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