Tax system will develop business and create employment, says the President

President Mohamed Nasheed has said that the newly introduced tax system would result in the development of business and trade in the Maldives, and would also create new employment opportunities in the country.

Speaking in a gathering of ruling Maldivian Democratic Party (MDP) last night at Lh. Hinnavaru, the President assured that the many criticism of his government’s decision to introduce Goods and Services Tax (GST) were simply baseless.

President Nasheed said that levying a 3.5 GST, after the abolition of import duties, would contribute to the financial betterment of businesses and that it would enhance business sector.

“If traders among us think about it even for a few seconds, it would become very clear to them that ending the import duties and beginning, instead, a 3.5 GST on sales would greatly benefit them”, said the President. He continued saying that “it would develop the business sector in our country, and development of business sector would necessarily mean that new employment opportunities would be created. Without such development of business, no new jobs would be created”.

The President said that his government did not understand the policy of government becoming indebted without finding ways of getting revenues, and that his government would generate revenues, which would then generate double-fold incomes for the people. He then stated that even Island and Atoll Councils should begin taxing the people.