MUSCAT: Finance Minister of Oman, Ali Hasan Khalil, told in a conference which was organized by Muscat Chamber of Commerce that “there is web of corruption at Customs department and it’s difficult to dismantle but not impossible”.
Khalil is one of the few finance ministers who has publically acknowledged that corruption at the Customs Department is rife.
Experts and traders insist that the bribery and smuggling practices at the Port of Muscat and Rafic Hariri International Airport have been going on for many years and no one tried to put an end to it.
There are no official figures on how much money the government is losing each year from smuggling and tax evasion at customs, although independent sources estimate it to be more than $500 million a year.
Revenues from customs in Oman are one of the largest sources of income for the treasury.
Khalil said he planned to take a series of measures to end illegal practices at Customs.
“We will take drastic measures, and the problem will not end if we are soft in controlling the spoiled food items [passing illegally through customs] that are connected to public safety,” the minister said.
Khalil Wednesday referred an official at the Customs department to the prosecution office on suspicion of corruption, document forgery and embezzlement.
In his lecture, Khalil also commented on the measures he is taking at the ministry’s Real Estate departments. He added that the ministry would not show any leniency or mercy toward those who are violating the law there.
“Some bold measures were taken against some of the violators and there won’t be any cover for anyone. We have to work with one voice and tackle all the problems,” Khalil said.
The minister added that punitive measures against suspected violators and corrupt officials are being taken every day.
Khalil also noted that the drop in oil prices has had positive and negative effects for the government.
“On the positive side, the state can save up to $1 billion a year if the price of oil remains close to $50 per barrel. On the negative side, the state used to collect LL350 billion from gasoline excise, but regrettably this tax fell by half and we lost nearly LL200 billion in revenue,” he said.
The minister was referring to the decision of former Finance Minister Raya al-Hasan to reduce taxes on 20 liters of gasoline by LL5,000 in 2009 due to the rise in oil prices in the international markets.
