A wide widespread economic reform in most developing countries, including the Arab countries,
is being witnessed during this decade. This reform aims to increase economic growth rates and
give balance to the country’s balance sheet and balance of payments. This may be done by
rationalizing public expenditure, increasing tax resources, encouraging exports, increasing
investments and savings, in addition to giving vital role for the private sector, in the process of
developing and reforming public sector. Besides, controlling consumption through the abolition
of subsidies, introducing taxes on consumption and the treatment of social problems such as
poverty, unemployment and low levels of income, as well as poor distribution of the same. Since
taxes are the basis for societies development of societies, aim to redistribute wealth and income
among members of society and provide benefits for various categories of the society, through the
services and development projects implemented by the country, we find that the Sultanate of
Oman, like other countries, use the tax resources and harnessing them in financial and
development goals, These takes place by spending taxes on governmental services that benefit
the whole community, such as health and education projects, electricity, utilities and roads, in
addition to many other development projects. The private sector deviates from investing in such
projects and development goals, as they require massive capital and are considered non-
profitable. Further, many studies have confirmed that reliance on oil revenues is incorrect, given
that oil revenues are threatened by reduction and depletion.