(MENAFN- Khaleej Times) An advisory body to Oman's government has suggested sweeping spending cuts and tax rises, including a levy on liquefied natural gas exports, to cope with the hit to state revenues from the plunge in oil prices.
Oman has run a small budget surplus so far this year but the slide of the Brent crude oil price to around $80 a barrel in recent months, from levels of around $115 in June, promises to push it into deficit next year unless oil rebounds sharply.
Assuming an average oil price of $80 next year and no additional steps to boost revenue, the government is likely to post a deficit of 3.05 billion rials ($7.9 billion), state news agency ONA reported on Monday.
The Shura Council therefore suggested reforms to expand Oman's non-oil tax revenues, including an expansion of tax categories, a review of tax rates, the addition of new tax sources and improvements to the efficiency of tax collection.
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