Speaking during the ceremony held on MIRA’s 9th anniversary, Parliament Speaker President Mohamed Nasheed said that the government should start taking income tax within this year.
Nasheed said that they are trying to propose the bill to the parliament before they go for annual leave. Nasheed added that there are many bills which need to be approved, and the amendment of income tax bill might have to be postponed to next term. He also added that the budget planned for next year consists of income tax, so it is a must to start taking income tax this year.
The first business income tax in the Maldives was initially taken during the Presidency of Mohamed Nasheed. And it had to be taken because the public knew that it is important for the social welfare of the country.
According to Nasheed tax is a way in which governments equalize it among the citizens. And if it is not done the difference between the rich and poor will be higher, which can cause huge problems. .
Furthermore, he said that before tax was taken from import and export businesses only. And that will resist the creativity of the people.
An income tax is a tax that governments impose on income generated by businesses and individuals within their authority. Even though in the Maldives income tax is not taken, in the countries which the law of income tax is implemented taxpayers must file an income tax return annually to determine their tax obligations.
Income taxes are a source of revenue for governments. They are used to fund public services, pay government obligations, and provide goods for the citizens.
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Source URL: Corporate Maldives