Maldives needs to introduce income tax to ensure sustained economic growth, a senior minister said Monday adding that the tax also provides key markers to measure economic progress in the archipelago.
In an exclusive interview with Avas, national economic council chair Ahmed Zuhoor said the people equally share the expenditure of the country with their income in developed nations.
Maldives cannot continue to depend on the revenue of a sole industry to fund the entire country, Zuhoor said referring to the tourism industry which remains the linchpin of the island nation's economy.
However, Zuhoor said president Abdulla Yameen Abdul Gayoom was not looking to immediately introduce income tax to the Maldives but insisted that the tax remained in the government's future plans as the key revenue measure.
"In the capacity of the economic and youth council chair I must say that income tax needs to be introduced. Income tax is essential for sustained and strong economic progress of a country. Income tax must not be seen only as a way to get revenue. If we want to see a brighter future, we need to introduce income tax someday soon," Zuhoor who is the minister at the president's office explained.
The minister also pointed out that the introduction of income tax would provide key economic indicators including income inequality and unemployment. The government can use these markers to ensure further economic progress, he added.
During the budget debate in parliament last week most lawmakers had echoed calls to introduce income tax to the Maldives with the opposition expressing concern over the new measures proposed to boost revenue for next year which according to them largely looks to impose a regressive tax system.
Governor Dr Azeema Adam also backed the need for income tax but insisted that the introduction of income tax must be given time and must be backed the necessary government policies.
