(Bloomberg) -- Oman will introduce 100% tax on tobacco, alcohol and pork meat from June 15, as the sultanate follows other Gulf governments in trying to pare its reliance on oil revenue.
Energy drinks will also be subject to a 100% levy and there will be a 50% tax on carbonated drinks, according to the Secretariat General for Taxation website. The new taxes could generate about 100 million Omani rial ($260 million) annually, Saleh bin Said Masan, head of the economic and financial committee at the Shura Council, said in November.
Oman delayed the introduction of the taxes by at least 18 months, even as the largest Arab crude producer outside OPEC contends with lower oil prices and dwindling reserves. The country's slow progress in making fiscal reforms has contributed to it slumping into junk grades at credit-rating providers, as well as fueling concerns that it may need to follow Bahrain in seeking a bailout from wealthier neighbors.
Read More: Once A-Rated at S&P, Oman Now Risks Descending Deeper Into Junk
Oman's current account deficit may widen to 9.1% this year, according to economist estimates compiled by Bloomberg. Economic growth may speed up to 2.3% from 2.1%, the data show.
Read More: Gulf's Weakest Links See Cost of Money Rising on Iran Risk
To contact the reporter on this story: Layan Odeh in Dubai at lodeh3@bloomberg.net
To contact the editors responsible for this story: Andrew Davis at abdavis@bloomberg.net, Neil Denslow, Jon Menon
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
