GCC approves monetary union
Ironically, it was during the 2001 GCC Summit in Muscat that the plan for the common GCC currency was mooted and it was given the final nod here in Oman yesterday without the participation of the hosts.Income tax?
It was decided to speed up the creation of the Monetary Board to oversee technical requirements for Monetary Union. The proposed board will finalise details for setting up the Central Bank and the issuance of the single currency.
The six Gulf nations have agreed in principle to implement corporate and individual income tax by 2012 and are now discussing ways to bring the deadline closer, people close to the matter told Emirates Business yesterday.
The oil- and gas-producing countries are grappling with the prospect of a significant contraction in energy income from oil and gas exports next year and the spectre of budgetary deficits.
People close to the action at the GCC summit in Muscat, Oman, that began yesterday said, however, that individual members of the Gulf group are unlikely to impose income tax unilaterally.
"However, the prospect of drastic reductions in oil revenues and the resultant fiscal deficits has forced the six countries to examine whether implementation can be done earlier than 2012," they said.