Times of Oman - January 21, 2016

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6 085010 120010 FROM THE WORDS OF HIS MAJESTY THE SULTAN

To the students of Sultan Qaboos University, 2000

‘His Majesty’s Wisdom’ During the ministerial meeting of Indian Ocean Rim States - an association we have long worked for and which has been achieved thanks to God’s good grace - I spoke personally to the group and told them that the ocean unites us, its waters unite us, the resources it contains belong to us all and that it is up to us to conserve them. A number of joint schemes and programmes are due to be prepared on the best ways of conserving and exploiting these resources.

THURSDAY, January 21, 2016 / 11 Rabi Al Thani 1437 AH timesofoman.com

ASSIGNED BY HIS MAJESTY

Oman takes part in Davos meeting DAVOS: Assigned by His Majesty Sultan Qaboos bin Said, Dr. Salim bin Nasser Al Isma’eeli, Chairman of the Public Authority for Investment Promotion and Export Development (Ithraa), took part in the 46th edition of the World Economic Forum (WEF), which began in Davos, Switzerland, on Wednesday. The four-day event discusses the progress in the information and digital technologies, innovation and the contribution of this

progress in upgrading the lives of communities and human development, in addition to highlighting the global challenges, such as healthcare and food security. WEF is an annual event in which top international economic decision makers, as well as a number of politicians and representatives of the non-government organisations take part to exchange views on various issues. -ONA

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‘Expect VAT in 2017 to shore up economy’ To earn additional revenue, a Majlis

Value Added Tax around the world

Nordic countries have high VAT rates

Sweden

25%

Standard rates

China

World highest VAT rate

18%

Saudi Arabia Qatar

Hungary

GCC

China

27%

the final stages of

17%

Kuwait Bahrain

Nepal

13%

British Virgin Islands

REJIMON K

reji@timesofoman.com

Princess Beatrice to speak at Oman’s .Open Minds conference

A3

Struggling economies With crude prices touching alltime low, economists in Oman and neighbouring countries have been stressing the need for VAT’s implementation to cushion the struggling economies. Governments in all the GCC countries have been working on a model which could be implemented across the members simultaneously.

Bermuda

UK

Australia

20%

10%

Venezuela

MUSCAT: As 2016 is set to be a challenging year for everyone, Oman Air announced it will be increasing the frequency of flights this year and will introduce new destinations. Chief Operating Officer, Abdul

Cayman Islands Anguilla Gibraltar Turks and Caicos Islands

15%

Guernsey Turkey

New Zealand

18%

Alaska

15%

Montana US

Argentina

21%

Second lowest tax rate in Asia, after Taiwan (5%)

According to the Shura member, once implemented, the VAT amount would be about three to five per cent, with foodstuff and certain other products to be exempted from the tax. “Through the introduction of VAT, we estimate that Oman will

5.5%

be able to earn between OMR200 million and OMR300 million extra every year,” the Shura member added. Nasser Saidi, a GCC-based economist, said VAT is the most notable reform that Oman and its neighbours could adopt to boost

Oregon New Hampshire

India

Delaware

Graphics

revenue, while Manjot Sing Chug, a business tax advisor in Muscat, said given the current oil prices, the implementation of VAT is likely to be accepted as a positive measure for diversifying and strengthen the governments’ revenue base. >A6 TOP THREE INSIDE STORIES

OMAN

Oman Air to raise frequency, flights tariqh@timesofoman.com

British Overseas Territory

Bangladesh

12%

NEW YEAR PLANS

TARIQ AL HAREMI

UAE

Oman Mexico

16%

MUSCAT: Value Added Tax (VAT) will be introduced in Oman by the middle of next year, or even earlier, a member of the Majlis Al Shura’s economic committee has told the Times of Oman. “Implementation of VAT is in the final stages. Oman is working out a mechanism on how to collect the tax. So, by the mid2017, we can expect VAT being introduced in Oman,” Tawfiq Al Lawati said.

Hong Kong

Russia

the VAT plan is in implementation

VAT-free countries and territories Macao

Al Shura member confirmed that

France was the first to introduce VAT on April 10, 1954. Some critics say that the poor pay more, as a percentage of their income than the rich

Rahman Al Busaidi, said, “2016 is a challenging year yet exciting”, as he expressed his delight at the increase in the number of flights to international destinations. Following a deal signed with Indian aviation authorities, Oman Air has now increased its passenger seats per week to more than 5,000, resulting in the doubling of

‘Visa ban on expats to hurt Omani market’

daily flights to both Cochin and Bangalore, as well as increasing frequency to Lucknow. Flights to Jaipur have also been increased from seven flights a week to 10. Flights to London, have also increased with a second daily flight starting from March 27, where Oman Air will depart from Muscat at 1 am. >A6, See also >A3

1

Tightening of the two-year visa ban on expatriates in Oman will impact the market, said a Chamber of Commerce official. >A5

WORLD

BOOST TO TOURISM

Licence for Oman’s first low-cost carrier Times News Service MUSCAT: An air services operator licence has been awarded to Muscat National Development & Investment Company, Asas, to establish the Sultanate’s first lowcost carrier. Awarded by the Public Authority for Civil Aviation, this new venture is anticipated to fuel economic growth underpinned by strong air traffic demand which is expected to grow by 40 per cent by 2019.

Eng. Khalid bin Hilal Al Yahmadi, CEO of Asas, said, “At Asas, our aim is to become one of the main development and investment arms for the government and pension funds in the country. “To that end, we have identified a portfolio of potential development projects for the next 5 to 10 years across various industries. One of the core sectors is tourism and we are adopting an integrated approach that covers its entire supply chain of which transporta-

tion plays an instrumental role as an enabler for the development of the economy in general and tourism in particular.” He added, “The national budget airline will provide access to economical and efficient means of transport and advance the aviation sector in Oman. It will naturally complement our diverse projects that will soon come on stream, including our real estate and entertainment projects to maximise impact and generate

sustainable returns. The growth of the aviation sector in the region is what drove us to explore the sector and create value for Oman.” Established in 2014, Asas’s mandate is on identifying new investment opportunities and intelligent solutions that enrich the quality of life of people in Oman. The company’s business model revolves around collaborating with public and private sectors efforts in tourism, logistics, healthcare and education.

Israel plans to grab West Bank farmland

2

Israel plans to appropriate a large tract of agricultural land in the occupied West Bank. >A15

MARKET

Sohar freezone master plan in 2016

3

Freezone Sohar will finalise its master plan to develop a huge area of 4,500 hectares of land by the middle of this year. >B1


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