Parliamentary Committee of the Whole House passes bill to increase withholding tax on foreign contractors by 10 percent
18 އޯގަސްޓު 2026 | އަންގާރަ 08:52A parliamentary committee has approved a bill to increase the withholding tax on non-resident contractors from 5% to 10%. While the government maintains that this amendment aims to foster a competitive environment and expand opportunities for local contractors, opposition members argue that the tax hike is not a viable solution to the challenges facing the industry.
From the People's Majlis: A parliamentary sitting has also been scheduled for Tuesday. | RaajjeMV
The Whole House Committee of the People’s Majlis has passed a bill proposing an increase in the withholding tax rate for non-resident contractors in the Maldives.
The bill was passed during Tuesday's committee of the whole house meeting with a majority of 64 members voting in favor.
The amendment to the Income Tax Act, submitted on behalf of the government by Mathiveri MP Hassan Zareer, proposes to increase the current tax rate from 5 percent to 10 percent.
Among the government's additional objectives for proposing this bill is the establishment of a competitive environment between foreign and local contractors within the Maldivian construction industry. Furthermore, it has been stated that these amendments will enhance opportunities for local businesses to secure projects.
However, members of the opposition MDP argue that simply increasing the withholding tax from 5 percent to 10 percent will not provide Maldivian businesses with any additional opportunities to carry out projects.
