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Museum of Omani Dress opens to share the Sultanate’s clothing heritage
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THURSDAY, March 5, 2015 /14 Jumada Al Ula 1436 AH
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More flights from Oman to Pakistan
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Flights between Muscat and Pakistan will have increased frequency from March 23. Pakistan International Airlines (PIA) will enhance its frequency from 13 flights, which will gradually go up to 17 by this year-end. Talking to the Times of Oman, Shahzad M. Paracha, country manager, PIA Muscat, said they will be adding more flights to Islamabad, Gwadar and Turbat. PIA operates flights to Karachi, Lahore, Sialkot and Islamabad in addition to Peshawar, Gwadar and Turbat from Muscat Airport. >A2
VEHICLE PLUNGES INTO WADI, ONE INJURED
One person sustained serious injuries when his car veered off the Muscat Expressway near the airport and plunged into a wadi. The driver lost control of his vehicle as it plunged into the wadi, according to an official from the Royal Oman Police. A helicopter was used to rescue the injured who has been admitted to Khoula Hospital. The accident caused gridlock on the Muscat Expressway. -Supplied picture
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Majlis targets expats working past 60
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Parents fret over school admissions
Omanis looking for jobs, Majlis members
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Most of the Indian parents looking for admission for their children in the Indian schools have expressed concern over the dwindling vacancies available. The parents shared their concern over the shortage of seats on social networking sites actively and responded to the article that appeared in Wednesday’s edition headlined ‘Thousands of Indian students to be hit by school place crisis in Oman’. Some parents urged the Indian school authorities to expand the facilities. >A5
debate giving extension to expats beyond 60, saying exception should be given only in special circumstances
FAHAD AL GHADANI REJIMON K
fahadnews@timesofoman.com reji@timesofoman.com
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MUSCAT: Expatriates working past the age of 60, and their status under the Sultanate’s labour laws, are in the sights of the Majlis Al Shura. Fixing the retirement age at 60 for expat workers is a consideration, said a member from Majlis Al Shura, while another said that allowing employees to work after crossing the age threshold should be stopped to create more opportunities for job aspirants. “We will consider fixing the retirement age for expatriates at 60 while making the new labour law. However, a detailed study will be required to know the needs of the market and both advantages and disadvantages of the new move,” Ahmed Al Busaidi, member of youth committee in Majlis Al Shura, told Times of Oman.
Duqm staff houses to be ready by mid-2016
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Duqm Permanent Accommodation for Contractors (PAC), a joint initiative of Duqm Special Economic Zone Authority and Renaissance Services for bluecollar workers, will be ready by mid-2016. As much as 85% of the contracts, including two main construction packages awarded to Services and Trade and Al Hajiry, have already been awarded and two remaining packages worth OMR3.5 million — one for building a sewage treatment plant and another for an electric work will be awarded by April. >B1
“Renewing job contract for expatriates who have crossed the age of 60 should be stopped. By this opportunities for job aspirants can be created in the market. Exception should be given only to special cases if the service of the employee is irreplaceable,” Said Al Maqbali, a Shura member, said. The present labour law is silent on the retirement age. However, while discussing the termination clauses, the law says that the contract shall not be terminated from the part of the employer unless the worker reaches the age of 60 at least. Meanwhile, an official from the Ministry of Manpower said that renewal is happening only because the employer is satisfied with the employee who has crossed the age of 60 and requests to continue service. “By allowing expatriates who are above 60 to continue their work in Oman can be seen as a crime towards the job aspirants. Why don’t they quit the job at the age of 60? They are stealing the opportunity of job seekers,” Ali Al Moqaimi, a private sector employee, said. A job aspirant also sounded the same opinion. “I am looking for a job. But I have been told by the employers that there are no vacancies. At the same time, they are keeping [workers] who have even crossed the age of 63 and 64 in the company. I agree and respect their experience. But until we don’t get a chance to work, how can we gain experience,” Fawaz Al Farsi, a job aspirant, said. However, Tonia Gray, general manager of Competence HR, said that age should not be a factor in determining when anyone should stop working. >A5
O I L P R I C E I M PAC T
New tax regime won’t hit private sector; Oman to brave oil price deficit TARIQ AL HAREMI
tariq@timesofoman.com MUSCAT: Despite falling oil revenues, Oman is making an all-out effort to diversify the economy and boost its revenues, says one expert. Continuing its resolve to boost spending, Ahmed Al Esry, managing partner, Ernst and Young, says that Oman’s private sector would not be affected by the new tax regime as many projects are under way in the tourism and hospitality sectors. He was speaking at a briefing session hosted by Ernst and Young on the ‘Growing Significance of Tax’, at the Grand Hyatt Hotel in Muscat. The conference was attended by more than 100 senior
executives representing large business houses in Oman, and multinationals from the US, Europe, Korea, Japan, China and several other countries. The session featured discussions on the impact of falling oil prices on the economic health of Oman. It provided guidance on the future outlook of what organisations should expect and how they should view taxation in the current macroeconomic environment. Commenting about the session, Ahmed said: “With oil price being at a much lower level than it was over the past few years, economic diversification and reduction on oil dependence will have to be pursued actively. The government has
Economic health Budget tax revenue (OMR billions)
400 2014
500 2015
Inflation rate (%) Approved spending for 2015
OMR 14.1 b
4.1 2.9 3.1 2.2
2011
2012
2013
2014
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ensured that ongoing projects in the country would not be affected, announcing its biggest ever budget-spending for 2015.” The government is focusing on widening its revenue base. In line with this objective, the 2015 budget tax revenue was increased by 25
per cent from OM400 million to OMR500 million, despite no further increase in tax rates. This is an indication of the government’s confidence that the economy will continue to grow in 2015. The budget plan for 2015 was announced with an approved spend-
ing of OMR14.1 billion to help economy grow by 5 per cent with the inflation projected to decline in 2015. This is against 2.2 per cent and 3.1 per cent growth in inflation rate in 2014 and 2013, respectively. Since 2010, the uniform tax rate for corporate businesses is set at 12 per cent with no apparent change as tourism and hospitality are the main industries which will provide the expected tax revenue worth OMR500 million (25 per cent increase) as compared to OMR400 million last year. “In fact, we need to take care of small and medium enterprises (SMEs) by encouraging investments to increase our tax revenue,” he noted. Due to falling oil
prices, project spending is to be prioritised while focusing on diversifying the economy to boost non-oil sectors for more revenues. Currently, there are several projects under way and some are expected to complete by the first quarter of 2015 such as the BP Khazzan Project, railway project, petrochemical complex in Duqm and Sohar as well as an agreed gas deal with Iran where Oman will import 20 cubic meters of gas every day. “Any income related to Oman, such as imports, will be taxed. That will increase the revenue for this year,” said Al Asri explaining the strategy of obtaining more tax revenue from imports. >A6
S T I F F E R P E N A LT Y
Celebratory gun firing is asking for trouble FAHAD AL GHADANI
Fahadnews@timesofoman.com
Iraqi forces to encircle IS in Tikrit
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MUSCAT: Firing of guns during celebrations could invite tougher penalties as there is a concerted move by the government to stop such behaviour. The Royal Oman Police (ROP), under the directives from the Ministry of Awqaf and Religious Affairs, has advised people to avoid using weapons and firing in the air on celebratory occasions. The ministry issued a circular two days ago directing the Imams in mosques to advise people on the issue.
Unwarranted firing The circular stated that unwarranted firing on several occasions had caused fatalities recently. Therefore, Imams should warn the public of the legal implications of such actions. The ROP revealed earlier that two nationals, both aged 18, were killed in a shooting incident in North Sharqiyah governorate in 2014, while 16 others, including seven children, sustained bullet injuries. Among the injured, one suffered grievous wounds, eight suffered medium injuries and seven others
had light injuries. The ROP also pointed out that a majority of the incidents occurred either when the guns were being cleaned or when someone was playing with them in the presence of others. Incidents Other incidents occurred while hunting birds, firing at weddings and on other occasions. The weapons and ammunition laws ban the carrying of weapons in public places, except some light conventional guns with the permission of the ROP. The law states that a fine of OMR200 will
be imposed on anyone firing in the air without obtaining a licence, and it will increase if the firing takes place on social occasions. Law The law also stipulates a fine of OMR300 and a jail term of three months to be imposed on anyone found firing a weapon on social occasions. Possessing conventional guns and other weapons without a licence is illegal and anyone found violating this law is fined OMR100, and the weapon is confiscated. >A6