Nasheed: Income tax will apply to approximately 6,000 people

Income tax, for which Maldivian Democratic Party (MDP) has announced the intention of submitting legislature in 2019, will apply to approximately 6,000 people, says Former Maldivian President and Leader of MDP, Mohamed Nasheed.

Speaking during the ceremony held to launch display of posters of MDP’s parliamentary candidates, Nasheed said income tax will apply to people who earn a monthly income of MVR 60,000 and above after deduction of monthly expenses, at the rate of MVR 0.03 per MVR 1.

“Agenda ’19 sets new sources of State income. The biggest source will be income tax. We estimate the tax will apply to approximately 6,000 people,” said Nasheed.

Nasheed said that most of the members of MDP fell into the middle-income category. He said MDP’s policies and its members had a key role in sustaining the Maldivian economy. And said the party would not push for any tax which could be detrimental to its members.

“We are talking about a tax which applies to a few people. I repeat that this tax will not apply to low-income groups in Male’ City and the atolls, or the families which vote for MDP and live a content life,” said Nasheed.

During his presidential address to the Parliament last Thursday, President Ibrahim Mohamed Solih announced the Income Tax Bill will be submitted to the Parliament in 2019, and once passed, will take effect in 2020.

“In order to reform the tax system, I plan on submitting a Bill to the Parliament this year to introduce income tax. Once the Bill passes, income tax will take effect next year,” said Solih.

Reducing the income gap, reforming the tax system and introducing income tax was one of Solih’s electoral pledges.