Thursday, January 11, 2007

a nation's money: a taxpayer's rights


There have been speculation in the past that the since the oil and gas market is quite unreliable that the government of the Sultanate of Oman would resort to imposing taxes on services provided at small prices within the grasp of anyone who resides in the country.

The government has, though, denied this 'incorrect piece of information' saying that it would never come to impose anything more on the citizen/resident/national because the individual already bears the financial turmoil of having to balance anything from a loan from a local bank to a marriage preperation during the course of their lifetime.

Having said that, it started imposing a fee for people who wish to cross the road borders between itself and the United Arab Emirates in different rates, excusing that to a matter of gathering funds to keep maintenance costs down. It also set out to impose other indirect taxes that it categorizes as part of keeping the deficit of the country's budget down such as tourism tax, service tax and Municipality tax (5%; 5%; and 4% respectively).

In western societies, having formed taxes of which the local taxpayer pays for means giving people the power to speak up about anything that the government considers looking to use that money into whether it was to wage a war, or even building bridges and residential plots.

Keeping that concept in mind, howcome is it in Oman that we don't have a say in what goes on the country of projects of which our good money is being wasted in? Even if it was a few mesely baisas that I paid some day that I can remember very vaguely. Point is: I paid my share and without that small amount the government organization may not have been able to come up with the sum needed for such a project.

In short, the term 'power to the people' doesn't apply here because of many reasons of which the most important - in my opinion - is the Omani residents/citizens/nationals ignorance of their own rights in the country towards the money they pay up. While the second reason - which has an enormous question mark on top of it - is why the government does not apply this concept here in Oman?

What is it that they fear?

My point of view on this matter is that the government - lead by His Majesty, Sultan Qaboos - is afraid of handing over this power over to the people because they fear that the concept is far too early for the Omani population to handle. As it is in the rest of the GCC countries, with the Sultanate marking the lead as an example in history.

But, mark my words, there will come a day.

2 comments:

muscati said...

http://archive.gulfnews.com/articles/07/01/08/10095323.html

Oman is carrying out studies to introduce Value-Added Tax (VAT) but would prefer to do that when the neighbouring UAE, especially Dubai also implements VAT, said a senior official of the Ministry of Finance on Sunday.

"We are considering introduction of VAT, but would like to do that with the UAE, or at least with Dubai," Darwish Bin Esmail Al Balushi, Secretary-General at the Finance Ministry, told Gulf News.

He said Oman had not set any time frame to introduce VAT but reckons it would be appropriate to levy VAT with Dubai. In November last year, Dubai Customs launched VAT study.

VAT is a substantial and workable alternative to customs duty and its introduction comes in consistence with the internationally recognised guidelines and policies in almost 150 countries worldwide.

Al Balushi, assured that the VAT would be moderate and there would be no customs duty once VAT is introduced.

Sleepless In Muscat said...

Muscati:

Thank you for that informative insight.

But putting this into consideration; doesn't this mean that this would be an introduction to income tax, or am I mistaken?