MP Yaugoob expresses concern over rental income inequality

Dhaandhoo MP Yaugoob Abdulla, speaking at a parliamentary session. (Photo/Parliament)

Dhaandhoo MP Yaugoob has expressed concern over perceived inequality regarding rental income tax.

 MP Yaugoob stated that the proposals of the current bill would mean that rental tax from a house under one person’s name would be paid in different brackets.

“If the monthly earnings increase above MVR 200,000 a tax of 15 percent is imposed. However, in the business profit taxes, a 15 percent tax is imposed for earnings that increase above MVR 500,000,” said Yaugoob.

MP Yaugood called for a tax of 15 percent on rental incomes higher than MVR 500,000 attained from a house under the name of two or more people.

“That is also a rental income. The person also receives rental income, and they can manage by paying 5.5 percent as taxes in that situation. But if the house is owned by two or more people, a tax of 15 percent is imposed on them. “said MP Yaugoob after noting the inequality between taxes imposed on individuals and business profit taxes.

“That is just one issue. The other issue is that when a sole owner of a house passes away, and the house is inherited by his/her heirs, it is deemed as a partnership. The previously imposed lower rate of tax is increased to a higher rate.” said MP Yaugoob.

He also stated that these were issues that need to be addressed before the bill is passed.