Minister of Finance Dr. Mohamed Shafeeq has assured that citizens will not bear the burden of the measures taken to enhance state revenue. He made the statement during a session with the Parliamentary Public Accounts Committee.
Speaking at the committee meeting held to discuss the government's medium-term fiscal and debt policy for 2025-2027, Minister Shafeeq said that the government has no plans to increase taxes such as Goods and Services Tax (GST), Tourism Goods and Services Tax (TGST), Business Profit Tax (BPT), or withholding tax. As such, he said that any changes in taxes and fees would be structured to avoid burdening the public. Instead of raising tax rates, he said that the government intends to broaden the tax base, including increasing import duties on certain harmful items, which he noted would also have societal benefits.
Additionally, Minister Shafeeq highlighted his commitment to consulting with stakeholders before making any changes to the tax base. He emphasised efforts to recover significant amounts of unpaid taxes and acknowledged that while many reforms were included in this year's budget, implementation has been delayed due to various challenges. He also stressed the need for careful consideration in executing these changes.
Furthermore, Minister Shafeeq indicated that pay harmonisation would be a key focus in preparing next year's budget. He also said that measures will be taken to reduce costs by improving the management of state-owned enterprises (SOEs).
Regarding the substantial debt of the Maldives, Minister Shafeeq expressed concern over the need to boost revenue to manage debt repayments. He noted that 28% of the current income is allocated to debt interest, which hampers the government's ability to fund projects and services. As such, he highlighted ongoing efforts to address the debts.
Moreover, Minister Shafeeq outlined the government's commitment to increasing revenue and stabilising the economy. He also pointed to the Sovereign Development Fund (SDF) as a key part of this strategy, with USD 65 million deposited into the fund as of July this year.