Spike in rent with introduction of income tax

The income tax bill was recently passed by the parliament and ratified with the noble intention of decreasing the gap between the rich and the poor. However, with the introduction of income tax, rents charged for apartments in Male' city have already spiked.

President Ibrahim Mohamed Solih ratified the bill on income tax on December 17. As per the bill, income tax is payable under five brackets;

Below MVR60,000 – 0%
MVR60,000-MVR100,000 – 5.5%
MVR100,000-MVR150,000 – 8%
MVR150,000-MVR200,000 – 12%
Above MVR200,000 – 15%

A man leasing an apartment in Male' city said the landlord of his apartment has informed that the monthly rent being charged for the apartment will now increase with the introduction of income tax.

Although his apartment's rent is MVR 18,000, he will now have to pay MVR 21,000 starting next month, he said. According to the owner, the reason for the MVR 3000 increase is due to income tax.

"We came all the way here [to Male'] for the future of our children. We do not have all the resources available here back in our islands. We did not come here because we wish to spend all of our earnings on rent. The introduction of income tax is making the rich, richer. Why, because we, the poor, must pay the tax for the rich from our pockets. The government is not imposing rent control. Action must be taken against landlords who do such things," he said.

While the issue is being heavily debated on social media platforms, a man wrote on Facebook that the rent being charged for his apartment has been increased by MVR 2500, with the owner claiming income tax to be the reason behind the increase.

Male' Tenants Union (MTU) is currently gathering signatures for a petition calling to impose rent control in Male'. While this petition will be submitted to the parliament, MTU will be going door-to-door in Male' city to gather signatures for the petition.