Times of Oman - January 1, 2017

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SUNDAY

January 1, 2017 2 Rabi Al Thani 1438 AH

HM SENDS GREETINGS

FROM THE WORDS OF HIS MAJESTY THE SULTAN

MUSCAT: His Majesty Sultan Qaboos bin Said has sent a cable of greetings to field marshal Omar Hassan Ahmad Al Bashir, President of Sudan on his country’s Independence Day anniversary. In his cable, His Majesty the Sultan has expressed his sincere greetings and wishes of good health, happiness and a long life to the president, praying to the Almighty Allah to return this and similar occasion on him and the brotherly Sudanese people with further progress and prosperity. >A3

On the occasion of the 26th National Day, 1996

‘His Majesty’s Wisdom’ We wish to remind the new generation of the high purpose of their forefathers who braved the storms of the violent seas in order to provide us with a wholesome standard of living.

Founded 1975 . Volume 41 No. 255 | 36 Pages . Baisas 200 . Subscription OMR63 | ISO 9001:2008 Certified Company | Chairman/Editor-in-Chief: Mohamed Issa Al Zadjali | Printed & Published by Muscat Media Group

WHAT DOES THE NEW YEAR HOLD IN STORE FOR A NEW OMAN?

2016 was a tough year for everyone living in Oman. What do you wish for Oman in 2017? The Times of Oman asked a cross-section of residents for their New Year resolutions for Oman, to make it a happier new year.

Turn to >A4

FOREIGN MINISTRY

Sultanate joins Islamic coalition to fight terror MUSCAT: The Sultanate has decided to join the Islamic coalition to fight terrorism within the context of the common understanding of the Islamic countries, said a statement issued by the Foreign Ministry. The statement affirmed that the Sultanate’s joining the Islamic coalition to fight terrorism comes within the common understanding of the Islamic countries and in particular the role and leadership of Saudi Arabia. It will help achieve peace, security and stability in the regions dominated by armed terrorist violence. The statement said that Oman will join hands to ensure a regional environment characterised by security and peace in cooperation with all the parties to achieve this goals. >A6

MORNING MINUTE

The 6,000 years old history of Frankincense

A5

M I N I S T R Y O F H E A LT H

Hike cigarette tax to cut down on smoking: Official

WILL FUEL PRICES IN OMAN TOP 200 BAISAS IN 2017? FUEL PRICES

Oman should not roll back subsidies on petroleum products,

2015 D J

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higher crude price to

MUSCAT: Cigarettes prices should be doubled in Oman so they remain out of reach for most people, a senior official at the Ministry of Health said. “A pack of cigarettes, which now costs OMR1, should be made OMR2, or more, so that people will think twice before buying them. And from the extra tax money we can build a hospital every year,” said Dr Jawad Al Lawati, senior consultant and rapporteur for the National Tobacco Control Committee at the Ministry of Health (MoH), speaking to Times of Oman. Talking about his wishes for 2017, Dr Al Lawati said that tobacco taxes should be increased so cigarettes remain out of reach for most people. About 14 per cent of Oman’s male population smokes, while

recover, say experts

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N

D

2017 J

195 185

185 180

170

REJIMON K CHIEF REPORTER

150

reji@timesofoman.com

140

178

166 160 160

146

170

163

166 158

187

186

177 183 179

176

153

0.5 per cent of women smoke. In September, Oman raised the tax on tobacco products from 20 per cent to 40 per cent, a 100 per cent increase aimed at reducing smoking in the Sultanate. The cost for cigarettes rose from OMR1 for a pack to OMR1.2. The tax on tobacco products was raised for the first time in 17 years. >A6

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188

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MUSCAT: It is “logical” that fuel prices will top 200 baisa a litre in 2017 - but we shouldn’t be tempted to re-introduce subsidies, experts say. Loai B Bataineh, general manager and head of the investment banking group at Oman Arab Bank, said that, logically, prices would cross 200 baisas per litre in 2017 but, at the same time, this does not mean that subsidies should be brought back. “Winter demand and global deals are pushing up crude prices. It is expected to reach $60 per

A

Diesel

200

as economy needs

Staff Reporter

M95 M91

2016 J J

M

180

173 170 169

176 176 165

161

161 156 149

140 146 145

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137 130 120

130 120 114

Source: Times of Oman

barrel soon. So, logically, Oman fuel prices will also cross 200 baisas,” Bataineh said. “However, it doesn’t mean that subsidies should be brought back. Oman’s economy needs a better crude price to recover, so we should not bring back the subsidy

Graphics

soon,” Bataineh said, adding that people have learnt to ration their fuel consumption, and if subsidies were reintroduced it would be the wrong step. According to the International Monetary Fund, Oman’s break-even price for oil should be $75 per barrel. >A6

T E L E C O M M U N I C AT I O N S E RV I C E

TOP THREE INSIDE STORIES

OMAN

First female officer to head a police station

Government raises telecom royalty to 12% A E JAMES

1

For the first time in Omani history, the ROP has appointed a senior female police officer to be in charge of a police station. Lieutenant Colonel Shaikha bint Ashour Al Hambasiyah said she was thankful to be chosen for this historic appointment. >A3

REGION

MARKET

29 killed in Baghdad bomb blasts

Omani bourse ends higher by 7% in 2016

2

MSM rose 6.96 per cent, or 376.49 points, to close at 5,782.71 points in the just concluded year, predominantly due to improved confidence following a recovery in crude oil prices. >B1

Two bombs claimed by IS killed 25 people in central Baghdad, as fighting intensified in the city of Mosul where government forces are trying to rout the extremists from their last major stronghold.>A7

Baisas per litre

Super Regular (M90)

businesseditor@timesofoman.com

3

BOOSTING REVENUE: The government seeks alternative sources of

revenue, through new levies and increase in existing taxes.

MUSCAT: Oman government has decided to raise royalty paid by telecommunication service providers to 12 per cent of revenues in 2017, from 7 per cent now. The country’s market watchdog Capital Market Authority (CMA) has received a letter from Telecommunication Regulatory Authority (TRA) about the Council of Minister’s decision to revert royalty percentage on telecommunication operators to 12 per cent. A severe drop in oil revenue has prompted the government to find alternative sources of revenue,

through new levies and increase in existing taxes. Although there was a serious discussion on raising telecom royalty in January 2016, the government did not take a decision at that point of time. The majority state-owned Oman Telecommunications Company (Omantel) in a disclosure statement posted on MSM website said; “If the same increase had been applied for the first nine months of 2016, the effect on net profit would have been a reduction of OMR16 million.” Omantel group’s profit for the first nine months of 2016 grew by 4.8 per cent to OMR95.1 million. >A6


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