Muscat – Under chairmanship of H E Sheikh Abdulmalik al Khalili, the State Council convened a session on Wednesday to review and discuss the draft Personal Income Tax Law.

The session began with remarks from H E Khalili, who emphasised the council’s commitment to its national responsibility. He highlighted the “significant role played by its members in achieving their tasks” through in-depth deliberations on crucial legislative matters.

The primary focus of the meeting was the draft Personal Income Tax Law, which was referred to the State Council by Council of Ministers. The proposed law, submitted by the State Council’s Economic and Financial Committee, is regarded as one of the most significant legislative projects under review during the current term of the council.

The committee outlined key objectives of the proposed law, which include diversifying the country’s income sources, reducing reliance on oil revenues and ensuring a more equitable distribution of wealth among social segments. It also aims to strengthen the government’s ability to finance social protection programmes and tackle issues related to tax evasion.

Council members discussed the potential impact of the law on the economy and society, with the committee stressing the need for a balanced approach. The committee has pledged to conduct a comprehensive evaluation of the proposed law, assessing both its positive and negative effects before a final decision is made.

During the session, the State Council also reviewed the opinion of the Majlis a’Shura on the draft law. The council agreed with the shura on several articles as received but held differing views on certain provisions. These differences will be addressed by a joint committee formed between the two councils, which will prepare for further discussions in a joint session.

The draft Personal Income Tax Law is seen as part of Oman’s broader economic reform strategy aimed at achieving fiscal sustainability and reducing dependence on oil revenues. By introducing personal income tax, the government seeks to create a more stable and diversified economy while supporting social welfare initiatives.