People's Majlis passes Income Tax Bill
4 ޑިސެމްބަރު 2019 | ބުދަ 11:04The bill was submitted to parliament by Ungoofaaru constituency MP Mohamed Waheed
The People\'s Majlis
People’s Majlis has passed the Income Tax Bill at Wednesday’s sitting.
Passed with the votes of 67 parliamentarians with three members voting against, the bill will be implemented from April 2020 onwards. However, the bill states that tax will be taken from January 2020 onwards.
While the bill was passed with the amendments brought by the house’s sub-committee, those who earn over MVR 60,000 a month are subject to tax. Prior to the amendment, the minimum income rate was set at MVR 40,000.
The tax rates are zero percent for those who earn less than MVR 60,000, 5.5% for those who earn between MVR 60,000 and MVR 100,000, eight% for MVR 100,000 - MVR 150,000, 12% for MVR 150,000 to MVR 200,000 and 15% for those who earn over MVR 200,000.
The state budget for 2020 estimated a revenue of MVR 600 million through taxes. However, this amount is expected to rise due to the amendments brought to the rate determined for the minimum income of MVR 60,000.
Minister of Finance, Ibrahim Ameer earlier revealed that increasing the minimum income rate will bring losses to the country.
The bill was submitted to parliament by Ungoofaaru constituency MP Mohamed Waheed and was accepted by parliament on 19 November.
Introducing the bill was included in the government’s campaign pledges, President Ibrahim Mohamed Solih had stated that it is necessary to “bridge the gap between rich and poor and to complete the taxation system introduced by the Maldivian Democratic Party (MDP)’s government”.
