Dhaka, June 23 -- Oman has announced plans to introduce personal income tax as part of efforts to diversify its economy and reduce dependence on oil revenues, according to the state-run Oman News Agency on Sunday.

The new tax, established through a royal decree, marks the first of its kind among the six oil-rich member states of the Gulf Cooperation Council (GCC). However, the 5% income tax will not take effect until 2028 and will apply only to individuals earning more than $109,000 annually, placing the burden solely on the top 1% of income earners in Oman.

It remains unclear whether this move will influence other Gulf nations to adopt similar policies. The International Monetary Fund (IMF) has previously forecast that Gulf states may ...