Saeed: Amending law for a deadline extension not the best solution

Minster of Economic Development, Mohamed Saeed has remarked that he believed finding more convenient arrangements to help foreign workers in Maldives open bank accounts and have their salaries transferred to a registered bank in Maldives was more important than opting for an extension to the deadline provided to open the bank accounts.

A remittance tax of three percent is being taken from foreign workers from October 1, and every foreign worker is required to have a bank account in a registered bank operating in Maldives and have their salaries transferred to the account.

The government provided a three-month period for companies to open bank accounts for their foreign employees.

The law empowers the government with the authority to cease some of its services to the companies which fail to meet the deadline.

During a press conference held at Ministry of Economic Development this Sunday, Minister Saeed said that according to statistics released by Maldives Monetary Authority, foreign workers transferred over USD 400 million out of Maldives each year.

“What we are doing is, making this systematic. Regulating it through a formal sector. Bank accounts are required to take remittance tax,” said Saeed.

He said that despite the challenges over getting it done by the deadline, he believed amending the law to extend the deadline was not the best option.

He said it was a better option for companies, banks and MMA to discuss the issues and come to a more convenient arrangement.

“Amending the law – I don’t think that’s the best solution. What’s important is for the banks and companies to come to a better arrangement,” said Saeed.

He said that in the long run, the decision was beneficial to the companies as it would help protect the rights of both the foreign employees and the companies.