Oman will be the first Gulf country to impose a personal income tax.
People earning more than 42,000 Omani rials ($109,000) a year will be levied a 5% tax, starting in 2028. Gulf governments have been raising revenue through fees, value-added tax, and other measures over the past decade to reduce their reliance on oil exports.
Half of them will post deficits this year, with breakeven oil prices for the region above $80 a barrel — BNP Paribas expects this pressure to persist through 2026. Omani officials say the tax will affect only 1% of the population and will exclude spending on housing, health care, and education.
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