Parliament accepts Income Tax Bill

The parliament accepted the Income Tax Bill on Tuesday.

66 lawmakers voted to accept the government-endorsed bill, submitted to parliament by Ungoofaaru constituency MP Mohamed Waheed.

As per the bill, those receiving a monthly income over MVR 40,000 will be subject to the tax. This was met with concern from main ruling party lawmakers, who stressed that they had under the Agenda 19 vowed to take tax from those receiving an income of over MVR 60,000 per month.

Regarding the matter, Finance Minister Ibrahim Ameer told the Budget Committee increasing this would bring a substantial loss to the country. The ministry estimates a revenue of 600 million if income tax, as per the rate determined for the minimum income of MVR 40,000.

Tax Rates

Income 0 - 40,000: 0

Income MVR 40,000 – 60,000: 8%

Income MVR 60,000 – 100,000: 10%

Income over MVR 100,000: 15%

The bill has been forwarded to the committee of the whole house sub-committee, for further review.