State Budget 2022: tax to be imposed on plastic bags from next year
31 އޮކްޓޯބަރު 2021 | އާދީއްތަ 12:42MVR 727 million is projected as revenues through new means of increasing state revenue
MVR 47.7 million is expected to be received in taxes imposed on plastic bags
A tax on plastic bags has been proposed in the state budget proposed for 2022.
Minister of Finance, Ibrahim Ameer presented the state budget 2022 to the People’s Majlis on Sunday, revealing that the proposals for other means of increasing state revenue next year have been compiled in accordance with the government’s pledges to the people. As such, one of the ways to boost state revenue has been proposed as collecting tax from plastic bags.
The decision goes hand-in-hand with the Ministry of Environment’s single-use plastics phase-out plan that was compiled in 2020, which decrees that a tax on a variety of single-use plastics including plastic bags as a market-based instrument, must be imposed.
According to the plan, a tax of MVR two will be levied on each plastic bag, no matter its size.
The tax on plastic bags will be levied starting June 2022.
The state budget 2022 estimates a total of MVR 47.7 million to be secured as revenue from plastic bag taxes.
Other means of boosting the state revenue for 2022 include leasing new islands for resort development, expanding real estate tourism as well as selling land reclaimed through government expenses, to private parties.
Proposing the budget, Minister Ameer revealed that some of the new revenue measures proposed for next year were initially included in this year’s budget as well, however, it was delayed in the face of several challenges.
The new means through which state revenues may be increased are expected to bring in MVR 727 million for the budget.
The revenue projected to be generated through the expansion of real estate tourism is MVR 231 million, whereas leasing of islands for resort development is expected to bring in a revenue of MVR 300 million.
Further, the minister predicts a revenue of MVR 148 million to be generated through the sale of land reclaimed through government expenses, to private parties.
A total revenue of MVR 24.3 billion has been projected for 2022, inclusive of tax and grants.
A state budget of MVR 36.9 billion was proposed by the minister on Sunday.
