No matter how many laws are enacted, corruption cannot be stopped in a country if the President possesses a mindset inclined toward theft: Ziyad

Vaikaradhoo MP Hussain Ziyad has stated that no matter how many laws are enacted, corruption cannot be stopped if a nation's president possesses a mindset inclined toward theft.

During Monday's Parliament sitting, members debated a bill to amend the Income Tax Act, introduced on behalf of the government by Matheriveri MP Hassan Zareer. Contributing to the debate, MP Ziyad emphasized that there are critical factors to consider when discussing any tax-related legislation.

The member stated that with the proposed GST hike and the decision to increase withholding tax, it is crucial to consider the potential impact on small-scale guesthouses.

Ziyad stated that the stated objective of the bill is to create opportunities for Maldivians. He noted that the Fushidhiggaru project is currently the largest ongoing development in the country. He further highlighted that while the land reclamation is being managed by MACL, the entirety of the actual work is being carried out by foreign entities.

He further stated that foreign companies are registering as local entities in the Maldives to exploit a loophole that exempts registered domestic companies from withholding tax, allowing them to evade these payments.

Which Maldivian company received these funds? Which local firm was awarded the work? None. Not a single one. The entire state treasury is being drained by awarding contracts to just two specific companies. This is a scheme to siphon kickbacks by funneling money to foreign firms. No matter how many laws we enact, we cannot stop the looting of this nation if the President himself is intent on theft.

Hussain Ziyad

The Member stated that a large lagoon in Noonu Atoll has been leased in a manner that deprives Maldivians of tax revenue. He further noted that while the current administration claims to prioritize Maldivians, local youth centers—which were previously constructed by local island companies—are now being developed by Chinese firms. Ziyad remarked that this reflects the true extent to which Maldivians are being prioritized within their own country today.

The bill proposed by MP Zareer seeks to increase the withholding tax on payments made to foreign contractors for construction projects in the Maldives to 10 percent. The stated objective of the bill is to establish a level playing field and foster a competitive environment between Maldivian businesses and non-resident contractors bidding for construction projects within the country.