India and Oman on Tuesday signed a protocol to amend the Double Taxation Avoidance (DTAA) between the two countries and agreed to expedite the talks for early signing of Comprehensive Economic Partnership Agreement (CEPA).
The protocol to amend the DTAA to align it with the international standards on cross border taxation, simplifying tax procedures and promoting greater cooperation in tax matters was signed on the sidelines of the visit of commerce and industry Minister Piyush Goyal to Muscat.
Both countries entered into DTAA way back in 1997. The amendments could aid the trade that is expected to grow once the CEPA between the two sides is signed.
Negotiations on FTA with Oman that started November 2023, were completed in March 2024. Signing was expected to be completed before general elections in India last year but the request of review came.
The CEPA with Oman goes beyond what has been signed with the UAE in terms of scope and liberalisation. With the CEPA India will get access to 98% of its products in Oman and significant access in services.
Oman’s import duty ranges from 0 to 100% along with the existence of specific duties. 100% duty is applicable on specific meats, wines and tobacco products.
During the visit, Goyal co-chaired the 11th Session of the India-Oman Joint Commission Meeting (JCM) with the Minister of Commerce, Industry, and Investment Promotion of the Sultanate of Oman Qais bin Mohammed Al Yousef.
“The JCM saw productive discussions on enhancing bilateral cooperation in trade, investment, technology, food security, renewable energy and other key areas,” a commerce ministry statement said.
Goyal held a productive bilateral meeting with Minister Qais during which he undertook a detailed review of the bilateral trade and economic relations between India and Oman and identified concrete steps to further strengthen the mutually beneficial business ties, the statement added.
The minister also called on Deputy Prime Minister for International Relations and Cooperation Affairs and Special Representative of Sultan of Oman Sayyid Asa’ad bin Tarik Al Said.
He also held bilateral meetings with Oman’s minister of finance Sultan bin Salem Al Habsi, and Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ) Ali bin Masoud Al Sunaidy
The Minister participated in the India-Oman Joint Business Council (JBC) meeting which was hosted by the Oman Chamber of Commerce and Industry (OCCI), with support and participation of a delegation from FICCI.