Friday
27th Dec 2024
Dhivehi Edition
The opposition coalition has expressed their concern regarding amendments to the Income Tax Act presented by the government. Parliament representative for Maavashu constituency Mohamed Saeed and representative for Naifaru constituency Ahmed Shiyam today voiced their concerns in parliament.
Vice President of People's National Congress (PNC) Mohamed Saeed declared that Minister of Finance Ibrahim Ameer was unable to provide satisfactory answers for his queries. Saeed claimed he inquired about the losses local contractors would face due to the proposed decrease in withholding tax for foreign contractors, but the minister was unable to provide a satisfactory answer.
MP Saeed also observed that the Finance Minister, during discussions regarding state budget the previous year, did not even discuss the major change in tax brackets with the Governor of central bank Maldives Monetary Authority (MMA).
He divulged that specialists within the ministry were against the decrease in withholding tax proposed by the government, and the finance ministry mentioned that the increase in withholding tax would lead the government to have to pay a larger fee at a later time. He stated it was an issue faced when managing finance.
Marking the President's ability to pardon tax for certain individuals as concerning, Saeed said Minister Ameer was unable to justify the amendment to the bill. He assumed that the President may try to benefit some companies, and endanger companies with conflicting political interests.
Additionally, he speculated that the President was oblivious and forced to take certain steps as the Minister of Finance, Minister of Economic Development, and Minister of Foreign Affairs are operating as a cartel.
Vice President of the Progressive Party of Maldives (PPM) Ahmed Shiyam claimed that the bill was rushed, and the answer to the effects of the bill on the state income was unclear and disappointing. Shiyam also stated that no answer was given when asked if the president would have the power to benefit certain companies and pardon tax from previous projects.
The power given to the President with the amendment is hazardous, and the potential disruption in the flow of tax collection may lead to differential views on Maldivian tax authorities from international tax authorities.