Businesses in the Maldives fear MIRA, not income tax: MP Fayyaz

Most Maldivian businesses support levying income taxes but are distrusting and ‘fearful’ of the state tax authority, says Gan constituency MP Fayyaz Ismail.

MP Fayyaz said while speaking with Raajje Television that Maldivians in general do support the idea enforcing income taxes and that local businesses do so as well.

However, any aversion to it is the result of public distrust in the Maldives Inland Revenue Authority (MIRA), Fayyaz said.

“Most businesses are not against having income taxes levied on them. What they are concerned by is what may be done with that money and the information given to the state. MIRA is highly politicized and has been used to target businesses” Fayyaz said.

The lawmaker said that the Maldivian tax system is ready for income taxes and that the general public does not wish for a large wealth gap in society.

In regards to public trust towards MIRA, Fayyaz said that when the institution was first formed – under former president Mohamed Nasheed’s administration – it had been immensely trusted.

Fayyaz said that within the past four years the tax authority has become increasing politicized and is now used to target businesses, likening it to the ‘Rannamaari’, a Maldivian mythological sea demon that hunted islanders and had to appeased with a sacrifice.

“MIRA has become a Rannamaari, to local businesses it has become this pest that comes and takes most of their earnings at the end of every month”, the lawmaker said.

The opposition aligned parliamentarian said that the Joint Opposition’s ‘unity government’ will work to enforce more transparent tax procedures.