Minister of Economic Development and Trade Mohamed Saeed has expressed confidence in amendments proposed to the Tax Administration Act, such that tax are paid in dollars, to significantly boost the state-revenue.
Speaking at the press conference, Minister Saeed stated that the implementation of the amendments will increase the state-revenue through tax by USD 40 million to USD 80 million. Therefore, the minister revealed the government's efforts to bring the necessary amendments promptly, and ensure the enforcement as soon as possible.
Meanwhile, Minister of Fisheries and Ocean Resources Ahmed Shiyam recognised the dollar shortages experienced during the previous administration's tenure. However, he criticised the responsive actions of the previous government, stating that it tried to resolve the issue by printing money, instead of exerting efforts to reduce the state-expenditures. Experts have also attributed the current dollar shortages to the actions of the previous administration, lauding the current government's efforts to increase foreign currency reserves.
During the media address, Minister of Foreign Affairs Moosa Zameer stressed that critics have been spreading rumours on the country's financial situation. The minister urged all individuals to refrain from spreading false rumours, reaffirming that the government will not make any decisions which will negatively impact the residents.
Aiming to address the critical issue of dollar shortages, the government has decided to bring amendments to three legislations. The amendment to the Tax Administration Act will facilitate businesses that generate income in dollars by allowing them to make governmental payments in dollars. It will also enable companies earning revenue in dollars to pay corporate income tax in the same currency.
The government has been striving to improve the financial situation of the economy in various ways, including the stoppage of printing money. The government's efforts have to improve the status of the economy, has been lauded by the International Monetary Fund (IMF) as well.