Income Tax bill forwarded to Whole House Sub Committee

A Parliament session underway. (Photo/Parliament)

The Income-tax bill has been accepted and forwarded to the Committee of the Whole House Sub Committee in today’s Parliamentary session.

The bill submitted by Ungoofaaru MP Mohamed Waheed on behalf of the government was accepted unanimously by all 69 MPs present for the vote today. The bill proposed collecting taxes starting from next year.

Taxes will be collected from people earning more than MVR 40,000 per year and proposes a progressive tax system to be established in the country. The tax is expected to yield MVR 600 million per year to the state and will be collected from about 6000 people.


  • Income of MVR 0 – MVR 40,000: nil
  • Income of MVR 40,000 – MVR 60,000: 8 percent
  • Income of MVR 60,000 – MVR 100,000: 10 percent
  • Income of MVR 100,000 plus: 15 percent

The income tax bill is proposed to reduce the wage disparities in the country, stop unjust enrichment and refine the national tax system. The income tax will apply to both local citizens as well as expatriate workers.

Some MPs expressed concern over the contrasts in the income tax bill presented to the Parliament and MDP’s pledges made to the people on the bill in its Agenda 19 manifesto. MDP promised MVR 60,000 as a threshold in Agenda 19 and a 3.5 percent tax rate.

The MPs that expressed concern stated the desire to see this threshold reversed in accordance with Agenda 19 pledges during the committee phase of the bill.