President Ibrahim Mohamed Solih has revealed plans to submit a bill to the parliament on introducing a progressive income tax. The president made the remarks while delivering his maiden presidential address.
In the address, President Solih noted the income tax bill is proposed as means to overhaul the tax system. The president added once the bill is passed the income tax regimen will be enforced during next year which will be another step towards a fully-functioning Jazeera economy.
Furthermore, President Solih said national development in its true essence is measured by an increase in the living standards of all Maldivians.
Revealing the administration aims to ensure that wages are sufficient for citizens to lead dignified lives, the president stated the government is currently engaged in discussions with relevant authorities to determine a minimum wage. He further noted in comparison to past years, the economic growth rate of Maldives has gained significant traction following the introduction of the tax system, adding the growth and sustainability of the economy is tied to increasing public profit from net economic revenue.
While president made the announcement to introduce an income tax bill, it is notable it is an electoral pledge of the administration.
Speaking at a press conference on August 20, during the campaign trial, he said the basic necessities of the population must be fulfilled by the income generated by the state. He said if the projects are held at authentic costs, water and sewerage facilities will be established in every island along with a developed harbour.
Moreover, during the press conference, the president noted tax will be issued from individuals with the capacity and ability, adding the tax gained must be a progressive.