MUSCAT: The Ministry of Commerce and Industries has announced that the decision on customs exemption will take effect from July 1 coinciding with the launch of Bayan system, and that the exemption for the licenced industrial institutions will begin from the date of application. The Bayan system is a unified e-window which offers facilitations for traders and industrialists in line with the requirements of the government establishments, and in accordance with a well-studied vision aimed to actualise the strategic goals of the Sultanate.
From the beginning of July all industrial startups will be exempted from profit tax for five years renewable for another five years. The institutions which have industrial licences will be given an exemption from custom tariffs levied on import of industrial entities such as equipment, machines, spare parts, raw materials, among others, through the project duration. The industrial sector entities also enjoy a five-year income tax exemption.
It is worth mentioning that the number of industrial licences issued by the ministry stood at 8,529 by the end of May last year.
Customs exemption is considered a major incentive to manufacturers as it cuts manufacturing cost and is considered a major factor for attracting investors to this sector.
A total of 660 industrial entities have benefited from the customs exemptions. Likewise, Omani factories benefit from customs exemptions applied in the GCC countries, thereby cutting manufacturing cost.
Additionally, the industrial establishments enjoy a reduced electricity tariff and rents. The government has committed itself to the policy of opening the economic markets in accordance to the principle of free competition besides offering facilitations and incentives to the private sector so that they can play a major role in stimulating the national economy. These incentives include a package of guarantees, simplification of procedures, transparency in investment management, export guarantees and financing and providing industrial lands for setting up of projects.
