Oman to introduce labour and tax reforms

Our Correspondent

The Sultanate of Oman plans to scrap its age-old No Objection Certificate (NOC) system on January 1, 2021, clearing the way for expatriate employees in the country to switch jobs. The new rule applies to expatriate workers who have finished their contracts whether they are based in Oman or outside the country.

This will be a significant development in the country’s labour policy, said Foreign Minister Sayyid Badr Al Busaidi at the 16th IISS Manama Dialogue in Bahrain. Sayyid Badr said this is part of Oman’s 2040 vision to open up the country’s economy.

Sayyid Badr also informed that his country plans to offer visa-free stay for citizens of more than 100 countries to boost its travel and tourism sector.

Oman also plans to amend its labour laws, introduce new taxation and end some “long-standing” subsidies; low-income families will be protected in the new reforms.

The number of expatriates working in Oman has dropped by 17 per cent by the end of October 2020, the National Centre for Statistics and Information (NCSI) has pointed out. NCSI noted that 1,138,478 expatriates were working in private sector till the end of October 2020.

According to NCSI, the total expat work force in the country now stands at 1,435,070 compared to 1,712,798 last year. Of them there are 42,895 foreign workers in various government sectors while 253,697 people were registered in family and dependents sector.