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Income tax to be levied on those who earn over MVR 40,000: Finance

Ministry of Finance has revealed that the government has proposed to levy the income tax on persons who earn a monthly income of over MVR 40,000.

Tax Policy Consultant at the Ministry, Arushad Jameel said during a press conference that the government had proposed to levy the income tax on those with a monthly income of MVR 40,000 or higher. As per the proposal, 8% of the total monthly income will be imposed as the income tax.

The Ministry added that this was part of their works to build a progressive tax system in the Maldives.

The government's proposal for income tax:

* 8% of monthly income as tax from those who earn between MVR 40,000 and MVR 60,000

* 10% of monthly income as tax from those who earn between MVR 60,000 and MVR 100,000'

* 15% of monthly income as tax from those who earn above MVR 100,000

Those who earn below MVR 40,000 will be excluded from the income tax as per the regulation.

Imposing an income tax was part of President Ibrahim Mohamed Solih's pledges for presidency. The government had previously noted that the Bill will be submitted to the Parliament during the current term.