Oman’s PIT Reform: A Preemptive Move in a Volatile Gulf
Iran’s strikes have accelerated Muscat’s push for fiscal resilience.
On 26 June, the Sultanate of Oman introduced a personal income tax (PIT) set to take effect in 2028, becoming the first Gulf Cooperation Council (GCC) nation to enact such legislation. This bold fiscal shift aims to diversify revenue sources and reduce the country’s reliance on volatile oil revenues, which currently account for 68–85% of the state budget. As one of the smaller GCC economies, with a GDP of $104 billion and a population of 5.2 million, Oman faces distinct economic pressures that make this reform a strategic component of its Vision 2040 agenda. Although the 5% tax is expected to impact only the top 1% of earners, it sets a significant precedent for the region and reflects a broader recalibration - accelerated, in part, by the heightened geopolitical tension following Iran’s recent strikes.
A Gulf First
Keep reading with a 7-day free trial
Subscribe to MENA Unleashed to keep reading this post and get 7 days of free access to the full post archives.