Latest news with #fiscalSustainability
Bloomberg
04-07-2025
- Business
- Bloomberg
Greece's Fiscal Horror Show Is Now a Distant Memory
I'm Craig Stirling, a senior editor in Frankfurt. Today we're looking at Viktoria Dendrinou, Sotiris Nikas and Paul Tugwell 's reporting on Greece. Send us feedback and tips to ecodaily@ And if you aren't yet signed up to receive this newsletter, you can do so here. In Sintra this week, Federal Reserve Chair Jerome Powell chuckled when Francine Lacqua of Bloomberg Television cited his previous remarks calling for US fiscal sustainability, and then asked him, 'how's it going?'
Fox News
29-06-2025
- Business
- Fox News
Trump, lawmakers react after 'big, beautiful bill' clears Senate hurdle
Lawmakers from across the aisle are reacting to President Donald Trump's "big, beautiful bill" passing a key Senate vote on Saturday night. Sen. Ron Johnson, R-Wis., who flipped his vote from a 'no' to 'yes' in dramatic fashion, said in a statement that the mammoth bill is a "necessary first step" to fiscal sustainability and cleaning up the mess left by the Biden administration. "Biden and the Democrats left behind enormous messes that we are trying to clean up – an open border, wars, and massive deficits," Johnson said. "After working for weeks with President Trump and his highly capable economic team, I am convinced that he views this as a necessary first step and will support my efforts to help put America on a path to fiscal sustainability." The 51-49 vote went along party lines, with only Sens. Thom Tillis, R-N.C., and Rand Paul, R-Ky., voting against unlocking a marathon 20-hour debate on the bill. Senate Minority Leader Chuck Schumer, D-N.Y., was among the Democrats against what he called a "radical" bill. "Senate Republicans are scrambling to pass a radical bill, released to the public in the dead of night, praying the American people don't realize what's in it," Schumer said in a statement. "If Senate Republicans won't tell the American people what's in this bill, then Democrats are going to force this chamber to read it from start to finish." The bill will not immediately be debated thanks to Senate Democrats' plan to force the reading of the entire, 940-page legislative behemoth on the Senate floor. Sen. Rick Scott, R-Fla., however, said he was "proud" to work with Trump on the bill and "put our nation on a path to balance the budget after years of Democrats' reckless spending." Trump has said that he wants the bill, which must pass the Senate before being sent to the House for a vote, on his desk by July 4. Trump called the Senate vote a "great victory" and directly praised Sens. Johnson, Scott, Mike Lee, R-Ariz., and Cynthia Lummis, R-Wyo., in a post on his Truth Social platform. "They, along with all of the other Republican Patriots who voted for the Bill, are people who truly love our Country!" Trump wrote. "As President of the USA, I am proud of them all, and look forward to working with them to GROW OUR ECONOMY, REDUCE WASTEFUL SPENDING, SECURE OUR BORDER, FIGHT FOR OUR MILITARY/VETS, ENSURE THAT OUR MEDICAID SYSTEM HELPS THOSE WHO TRULY NEED IT, PROTECT OUR SECOND AMENDMENT, AND SO MUCH MORE. GOD BLESS AMERICA &, MAKE AMERICA GREAT AGAIN!!!" In a second post, Trump wrote, "VERY PROUD OF THE REPUBLICAN PARTY TONIGHT. GOD BLESS YOU ALL! MAKE AMERICA GREAT AGAIN!!!"
Arabian Business
25-06-2025
- Business
- Arabian Business
Oman announces 5% income tax: Everything you need to know
Oman will introduce the Gulf region's first personal income tax on high earners starting January 1, 2028, marking a historic shift in its fiscal strategy. The personal income tax (PIT) for high earners marks a major shift in Oman's fiscal policy as part of the broader Vision 2040 agenda to diversify national income and ensure long-term financial sustainability. The Personal Income Tax Law, issued by Royal Decree No. 56/2025, comprises 76 articles across 16 chapters. It imposes a 5 per cent tax on the taxable income of individuals whose gross annual income exceeds OR42,000 ($109,100), derived from income categories defined in the legislation. The law will officially come into force at the start of 2028. Everything you need to know about new Oman tax Effective Date: January 2028 Threshold: Income above OR42,000 ($109,100) annually Tax Rate: 5 per cent Exemptions: 99 per cent of citizens, plus deductions for key social needs Purpose: Fiscal sustainability, economic diversification, social equity Impact: Minimal GDP effect, no expected impact on foreign investment Dr. Said Mohammed Al Saqri, Minister of Economy, said: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. 'It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under 'Oman Vision 2040' and its first executive phase, the Tenth Five-Year Plan (2021-2025).' 99% of Omanis exempt from new tax According to Oman's Tax Authority, the exemption threshold was determined after a comprehensive economic and social impact study based on income data from multiple government bodies. As a result, approximately 99 per cent of Omani citizens will not be affected by the tax. To address social equity, the law includes deductions for education, healthcare, housing, zakat, donations, and inheritance, among others. Karima Mubarak Al Saadi, Director of the Personal Income Tax Project, confirmed that all necessary preparations and requirements for implementing the tax have been completed. The Tax Authority confirmed the development of a digital tax declaration system integrated with other government entities to promote voluntary compliance. The executive regulations of the law will be issued within one year of its publication in the Official Gazette. Currently, 68 per cent to 85 per cent of Oman's income is derived from oil and gas, depending on global prices. While prices have been favourable recently, the government warns of long-term volatility. The PIT law seeks to secure sustainable funding and mitigate reliance on hydrocarbons. Dr. Said Mohammed Al Saqri, explained that the (PIT) is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. More than 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. He added that the foreign investment is expected to remain unaffected, as the tax applies to individuals—not corporate entities—and Oman's rates remain competitive globally, the minister concluded. The 2025 national budget allocates more than OR5bn ($13bn) to essential services: Education: 39 per cent Healthcare: 24 per cent Social Protection: 28 per cent The Social Protection Fund currently supports over 2 million beneficiaries monthly, with PIT revenue expected to further strengthen the program.
Zawya
24-06-2025
- Business
- Zawya
World Bank report lauds Oman's strong economic performance
Muscat – The World Bank's 2024 Gulf Economic Update report highlighted that the Sultanate of Oman has achieved significant positive fiscal and economic results despite regional and global challenges. The report affirmed that Oman's economic performance reflects the success of its fiscal and economic policies amid global changes, aligning with the priorities of economic diversification and financial sustainability under 'Oman Vision 2040'. It noted that Oman has recorded fiscal surpluses in recent years due to government measures to improve financial performance, as well as a current account surplus driven by growth in non-oil exports and services exports, strengthening its external position. The report praised Oman's reduction of public debt from 68% to 35% of GDP, demonstrating its commitment to fiscal sustainability, along with its credit rating upgrade to an investment-grade level (BBB-) by S&P in 2024. Additionally, Oman maintained low inflation at 0.6% in 2024, compared to the GCC average of 2%. Looking ahead, the report projected continued current account surpluses and growth in non-oil exports, supported by fiscal discipline and economic diversification efforts. For the broader GCC, the report forecasted economic growth of 3.2% in 2025 and 4.5% in 2026, with the oil sector expected to grow by 5.7% and the non-oil sector by 4.9% in the medium term, while inflation remains low.
Zawya
24-06-2025
- Business
- Zawya
Income Tax key step for revenue diversification: Oman's Economy Minister
Muscat – The Ministry of Economy affirmed that the implementation of the Personal Income Tax (PIT), set to take effect at the beginning of 2028, represents a crucial step toward enhancing financial stability and completing the fiscal sustainability framework. This measure aims to ensure sustainable financing for development across various sectors. H E Dr Said Mohammed al Saqri, Minister of Economy, stated: 'The tax serves as a new revenue stream to diversify public income sources and mitigate risks associated with reliance on oil as the primary revenue source. It will help maintain current levels of social and service spending while preserving Oman's achievements in financial and economic stability under 'Oman Vision 2040' and its first executive phase, the Tenth Five-Year Plan (2021-25).' He explained that the PIT is a fiscal tool adopted by most countries worldwide as a key revenue source to fund state-provided services. Over 190 countries impose this tax, and in many, income taxes constitute the largest component of total tax revenues at federal and local levels, financing public goods and services. He noted that implementing the tax in Oman will yield significant economic benefits, supporting income diversification strategies and long-term fiscal stability as a pillar of economic growth. It, he added, will also sustain government revenues, strengthen the state's financial position, maintain credit ratings, and boost spending power for beneficiaries – directly stimulating aggregate demand and economic growth. He highlighted that oil and gas revenues account for 68% to 85% of Oman's total public income, depending on global energy prices. While oil prices have stabilised at favourable levels in recent years, they remain volatile. Oman has effectively managed additional oil revenues by reducing public debt to safe GDP ratios, increasing investment and social spending, and subsidizing essential goods and services, he further noted. He affirmed that government policies and initiatives have successfully shifted Oman's fiscal and economic trajectory toward sustainability and stability. Public debt has sharply declined, credit ratings have consistently improved to investment-grade levels, and Oman's standing in global competitiveness indices has risen. The Tenth Five-Year Plan sustained GDP growth near target rates, while economic diversification policies attracted quality investments and drove non-oil sector growth beyond expectations, the minister said. He added: 'As the Tenth Plan nears completion, Oman has advanced significantly in economic diversification and fiscal sustainability. The PIT will further prioritise financial stability by diversifying revenue sources – a strategic necessity to ensure equitable wealth distribution, enhance public services, strengthen social protection systems, and mitigate risks from global energy market fluctuations and other economic variables.' He emphasised that accelerating 'Oman Vision 2040' and its economic diversification strategy – transitioning to a knowledge- and technology-driven economy – requires sustainable funding for long-term planning. The Vision targets strategic investments in education, human capital, advanced infrastructure, innovation, and diversified sectors, alongside essential services and social protection. He pointed out that the 2025 budget allocates over RO5bn (39% to education, 24% to health, 28% to social protection) to these sectors, with the Social Protection Fund benefiting over 2mn people monthly as a key mechanism for household financial stability. As for the potential economic impacts, He noted that the tax study assessed effects on GDP and 18 economic sectors, concluding minimal impact (under 1%) due to high exemption and low tax rates. Foreign investment is expected to remain unaffected, as the tax applies to individuals – not corporate entities – and Oman's rates remain competitive globally, the minister concluded. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
