MUSCAT : Issued under Article 29 of the Executive Regulations of the Tourism Law, the circular requires all tourist and hotel establishments to continue collecting an 8 percent service fee on the total amount payable by customers for services provided.

The ministry said all service fees collected must be distributed entirely in cash to all employees of the establishment and must not be treated as business revenue or used for any other purpose.

Under the circular, establishments are required to distribute the service fees on a monthly basis, maintain supporting records of the payments, and prepare a detailed statement showing the total fees collected, amounts distributed, the names of beneficiaries, and the amount paid to each employee. A copy of the statement must also be submitted to the ministry’s Financial Affairs Department.

The circular will remain in force until the ministry issues a dedicated guide regulating service fee distribution procedures. The ministry said all tourist and hotel establishments are required to comply with the circular’s provisions with immediate effect.

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