Qasim: Income tax will discourage foreign investment

Leader of Jumhoory Party (JP), Maamingili MP Qasim Ibrahim has said that implementation of income tax in Maldives could discourage foreign investment.

Speaking during the People’s Majlis debate on the projected State budget for 2017 this Tuesday, Qasim Ibrahim said that loss of foreign investment would lead to a huge problem, given that the projected expenditure was higher than the projected income.

“Given how the situation is in Maldives, passing income tax right now could lead to immediate disinterest on part of foreign investors,” said Qasim.

He also stated that he did not feel either previous governments or current government had done enough to develop the country’s judiciary.

The comment comes at a time when Department of Judicial Administration (DJA) has expressed concern over the cut in its budget.

Qasim said that expenditure on development of the judiciary was of utmost importance for the future of the country.

Governor of Maldives Monetary Authority (MMA), Dr. Azeema Adam was summoned for discussion by the Budget Evaluation Committee of People’s Majlis, which Qasim is a member of.

She was asked by Gemanafushi MP Jameel Usman – a member of Progressive Party of Maldives – whether the government planned on implementing income tax in 2017.

Dr. Azeema had said that there were no plans for implementing income tax in 2017, but that it was something she personally felt was necessary.

She said that she believed income tax would help minimize income inequality in the country.