Income tax policy will help bridge wealth gap: MMA governor

Central bank Maldives Monetary Authority’s governor, Ahmed Naseer, has expressed support for imposing income taxes in the Maldives.

Governor Naseer said this at a press conference on Thursday, where he said he believes it will help bridge the wealth gap and bolster the economy.

The government coalition’s Maldivian Democratic Party proposed a draft legislation on introducing an income tax regulation.

This legislation was included in their manifesto for April’s parliamentary election, in which the party acquired a strong majority.

The proposed income tax threshold starts at MVR 60,000 per month. The regulation seeks to tax individuals with an income between MVR 60,000 and MVR 100,000 a month, for 3.5 percent.

Individuals with an income between MVR 100,000 and MVR 150,000 a month, are to be taxed for 6.5 percent while individuals who earn between MVR 150,000 and MVR 200,000 a month, are to be taxed for 10 percent.

Individuals who earn over MVR 200,000 a month should be taxed for no less than 15 percent of this amount, the draft legislation proposes.