The Whole House Committee of the Parliament of the Maldives has passed the amendment bill to the Income Tax Act.
The bill, which includes 53 amendments to the Income Tax Act, was submitted by Parliamentarian Ahmed Zahir on behalf of the government. Following review of the bill by the Parliamentary Committee on Economic Affairs, the bill was opened for debate at the whole house committee. Along with six amendments brought by the economic affairs committee and a single amendment by the whole house committee, the bill was passed by the whole house committee with votes from 27 parliamentarians.
Amendments proposed in the bill include revising the type of income that is exempted from tax, and removing the tax imposed on bank commissions, interconnection charges and re-insurance premium of individuals not residing in the Maldives. The bill also proposes a reduction of withholding tax percentage of construction companies from 10% to 5%.
Furthermore, the bill grants authority to the president to provide exemptions to income from certain businesses and projects. Such businesses, projects and sectors are to be decided upon discussions in the cabinet, and must be published in the Government Gazette.
The bill also removes taxes imposed on the expenses provided by the state for the official residences of the President, Vice President, Speaker of Parliament and Chief Justice. Furthermore, expenses on the presidential island, Aarah, have also been exempted from tax.