Oman’s telecommunications companies will pay a royalty to the government of 12% of revenues in 2017, the country’s Capital Market Authority said in a bourse statement on Thursday, citing a letter from the Telecommunication Regulatory Authority.
That is an increase from the current 7% royalty paid by Oman Telecommunications (Omantel) and Ooredoo Oman, the companies said in bourse statements.
The CMA said Oman’s cabinet had decided to lift the rate for next year.
Its state revenues strained by low oil prices, the government has been looking for ways to increase its income.
Omantel said a rate of 12% would have cost the company an additional 16mn rials ($41.6mn) in the first nine months of last year.
It made a net profit of 95.1mn rials in that period.
Ooredoo Oman, majority owned by Qatar’s Ooredoo, said the higher rate would have cost it 8.7mn rials over the same period, or 23.3% of its net income.
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