Times of Oman - March 1, 2016

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TUESDAY March 1, 2016 21 Jumada Al Ula 1437 AH

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FROM THE WORDS OF HIS MAJESTY THE SULTAN

‘His Majesty’s Wisdom’

MORNING MINUTE

Founded 1975 . Volume 41 No. 7

BOSNIA AND HERZEGOVINA

HM sends greetings

To the Council of Oman, 2011

As education is the basic pillar of progress and development, and in order to produce a responsibly aware generation with expertise and skills, and aspiring to a higher level of knowledge, it is necessary to conduct a comprehensive assessment of the educational march in order to achieve these aspirations and benefit from the available job opportunities in the public and private sectors.

| 40 Pages . Baisas 200 . Subscription OMR63 | ISO 9001:2008 Certified Company | Chairman/Editor-in-Chief: Mohamed Issa Al Zadjali | Printed & Published by Muscat Media Group

WA D I S O V E R F L O W

Rain falls in parts of Oman, chances of flash flood REJIMON K

reji@timesofoman.com MUSCAT: His Majesty Sultan Qaboos bin Said has sent a cable of congratulations to Dr Dragan Covic, Chairman of Presidency in Bosnia and Herzegovina on the occasion of his country’s National Day. In his cable, His Majesty the Sultan has expressed his sincere congratulations and best wishes to Dr. Covic and his country’s people. -ONA TOP THREE INSIDE STORIES

OMAN

Expatriates hail Indian budget

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Indian expatriates in Oman on Monday hailed the country’s budget for the 2016-2017 financial year, which was presented by India’s Finance Minister Arun Jaitley in New Delhi and included the easing of customs declaration and increasing free baggage allowance. These are welcome steps that will make things easier for millions of expats living outside India. Non-residents Indians without a permanent account number (PAN) card are currently subjected to a higher rate of tax deductions. >A4, A9

MUSCAT: Rain fell in Al Awabi and Nakhal causing wadis to overflow, a weather enthusiast said. “It has started raining in Al Awabi and Nakhal from afternoon. Wadis are overflowing and traffic has been hit. It may rain in Muscat by evening,” Bader Ali Al Baddaei, administrator of www.rthmc.net, a local web-based forum that discusses weather in Oman, told the Times of Oman. In its latest forecast, Oman meteorology department has predicted chances of flash flood and poor visibility during rain and thundershowers and. On Sunday, the Public Authority for Civil Aviation (PACA) forecast rain for the next three days starting from Monday afternoon, due to a deep upper air trough. “Isolated rains are expected over Musandam, Al Buraimi, and Al Dhahira. It will gradually affect Muscat, North and South Batinah, and Sharqiyah region,” it said.

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D E R E G U L AT E D P R I C E S

Revised March fuel prices announced

OMAN

Malayali lookalike star for Keralites

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A young Omani X-ray technician has become a star among Keralites in the region, owing to his resemblance to Dulquer Salmaan, the young superstar of the Malayalam film industry and the only son of megastar Mammootty. Abdul Rahman Mahdhushi, 23, an Omani citizen, who is working as an X-ray technician in Jalan hospital, became popular after an Indian doctor in Doha took a selfie with him to capture his resemblance to Salmaan and posted it on Facebook. >A5

WORLD

DiCaprio bags best actor award

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Catholic Church abuse movie Spotlight was named best picture at Oscars ceremony, after a night peppered with pointed punchlines from host Chris Rock about the #OscarsSoWhite controversy that has dominated the industry. In a ceremony where no single movie commanded attention, Mexico’s Alejandro Inarritu nabbed the best directing Oscar for The Revenant, becoming the first filmmaker in more than 60 years to win back-to-back awards. >A16

Oman moving towards 5% value added tax As fall in crude prices has led to fund crunch, Oman plans to introduce VAT to shore up revenues and streamline the tax system

CHEAPER FUEL: In March, regular petrol will cost 130 baisas per litre, super graded 145 baisas and diesel 146 baisas.

REJIMON K

reji@timesofoman.com MUSCAT: Super graded petrol will cost 9.3 per cent less in March, compared with the price before deregulation. According to the revised price for March, regular petrol will cost 7.14 per cent cheaper and diesel will be around 8.6 per cent less. In March, the revised regular petrol (M90) will cost 130 baisas per litre, super graded (M95) 145 baisas and diesel will cost 146 baisas. In February, the price of super grade petrol was 153 baisas per litre, for regular grade petrol it was 137 baisas and for diesel it was

146 baisas per litre. Following the dip in global oil prices, Oman had deregulated its oil prices in January this year as part of austerity measures aimed at plugging the budget deficit. Deregulation Before deregulation in January, the cost of super grade petrol was 160 baisas a litre, regular grade petrol was 140 baisas a litre and for diesel it was 160 baisas a litre. Fuel subsidies for 2015 were estimated to be OMR580 million, and with deregulation the government will be able to save that money, which is expected to be a great help in reducing the deficit.

FAHAD AL GHADANI REJIMON K

fahadnews@timesofoman.com reji@timesofoman.com MUSCAT: Oman plans to implement value added tax (VAT) at a rate of five per cent by 2018 or in 2019 beginning, a spokesman from the Ministry of Finance has confirmed. “The plans are on. We are working on the modality,” the spokesman told Times of Oman. Last week, Darwish bin Ismail Al Balushi, Minister Responsible for Financial Affairs, was quoted in news reports saying that Gulf Cooperation Council (GCC) countries have agreed to introduce VAT at the rate of five per cent in 2018. “GCC countries have already

agreed on five per cent rate after negotiations on a rate between three and five per cent, though the decision is yet to receive final approval,” the minister was quoted as saying. According to the ministry of finance spokesman, VAT is implemented all over the world and so Oman will also implement it. “VAT will help the country’s economy to boost revenues,” the spokesman added. VAT has been proposed as a measure to shore up revenues by the GCC economists and parliamentarians. It is expected that in Oman, around OMR300 million can be earned extra every year if VAT is implemented. Welcoming the move, a member of Majlis Al Shura’s economic committee said that as basic necessity items (20 plus like food and other essential goods) will be

excluded from the VAT list, consumers will not be hit hard. “VAT will definitely help the economy,” Tawfiq Al Lawati, the Shura member, said. Meanwhile, Gurumurthy N, a Muscat-based economist, said that VAT can streamline the tax system and avoid duplication of tax payment. “This a step in the right direction and 5 per cent is reasonable rate to start with,” the economist said. Last Monday, Christine Lagarde, managing director of IMF, had urged the GCC countries to implement VAT to overcome the oil price crisis. “Start by putting in place a simple system that initially focuses on VAT—ideally, a harmonised regional VAT. Even at a single-digit rate, such a tax could raise up to 2 per cent of GDP,” the IMF chief had said. “Oil-exporting countries that have been heavily affected by the recent plunge in oil prices can also focus on corporate income taxes, as well as property and excise taxes. They can also continue to invest in building tax administration capacity that could eventually allow for the introduction of personal income taxes,” the IMF chief added. Cyril Widdershoven, energy and security specialist, said that this action is being taken to lower overall government budget deficits, which has increased due to low oil and gas revenues. >A6

I N D I A N S C H O O L WA D I K A B I R

Student in hospital after bus accident Oman students gear up for Manila Shell Ecomarathon

A6

REJIMON K

reji@timesofoman.com MUSCAT: A Class 1 student of Indian School Wadi Kabir has been admitted to the Khoula Hospital with broken pelvis, damage to liver and internal bleeding, after she met with an accidentinvolvingabusonSunday afternoon. “The accident occurred when the student named Malavika was trying to get down from the bus near her home. Her school bag got stuck between the doors of the bus. Without noticing this, the driver moved the bus ahead dragging along the girl,” Malavika’s father said from Khoula Hospital.

“The girl has been bleeding since yesterday. However, her condition is better now. If the driver had taken a little care this would not have happened,” the injured girl’s father said. An official from the transporting company said they are quite worried over the accident. “We assisted the parents in admitting the child to the hospital. It’s an unfortunate incident,” the driver said. When contacted, Indian School Wadi Kabir’s principal said the school is in touch with the parents and are praying for the speedy recovery of the child. The parents have lodged a complaint with the police.


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