Muscat: Oman’s Ministry of Finance has canceled bonuses for government ministers amid economic strains felt throughout the country due to the drop in oil prices.
In a statement, the ministry said that the circulating rumours were untrue. Previously, ministers received annual bonuses.
Meanwhile, the Supreme Council for Planning on Sunday rejected requests for budget increases for various governmental bodies.
Projections for 2016 have predicted Oman would have a deficit of 3.3 billion Omani rials (Dh31.47 billion) down from 4.5 billion rials in 2015.
Oman reported a 1.6 billion deficit in the first quarter of 2016. Oman plans to cut government expenditures to narrow the deficit.
In May, Oman’s Shura Council and State Council approved a 35 per cent tax on petrochemical and mining companies, a major increase from the current 12 per cent.
The members also voted to increase the tax on the Liquefied Natural Gas (LNG) to 55 per cent, up from 15 per cent.
A royal decree officially mandating the tax has yet to be issued.
