MDP proposed to imposed income tax on those that earn higher than MVR 60,000

Maldivian Democratic Party (MDP) has proposed an amendment to impose an income tax on all those that earn higher than MVR 60,000.

The draft was proposed for the upcoming 19th Parliamentary election. The draft stated that an income tax of 3.5 per cent will be deducted from any person who earns between MVR 60,000 and MVR 100,000.

While the income tax is decided based on earnings, the second category for tax imposed would be a deduction of 6.5 per cent for those that earn between MVR 150, 000 and MVR 100,000.  

As such, the third category proposed by the party stated that there would be a 10 per cent income tax deducted from those that earn between MVR 150,000 and MVR 200,000. The fourth category is to deduct a 15 per cent from those that earn more than MVR 200,000.

The proposal drafted by MDP dictated that anyone who acquires earnings from Maldives - whether they are a citizen or not- will be subjected to the income tax.

The collection of income tax was one of the campaign pledges of President Ibrahim Mohamed Solih.