Tax hikes under previous govt came after all loan doors closed: MP Mandey

Funadhoo constituency MP Mohamed Mamdooh (Manday) has stated that the previous MDP government was forced to increase taxes directly affecting the public only after all avenues for obtaining loans from various financial institutions were closed. Speaking in Parliament in support of a bill to amend the Tax Act (Law No. 10/2011) submitted by the MP for Kolamaafushi constituency, Manday said that while the opposition MDP now strongly claims current policies are burdensome, it was under their own government on January 1, 2023 that GST was raised because there was no other way to meet the state's recurrent expenditure. He noted that the previous government took loans from various banks and financial institutions until every opportunity was exhausted, and only then was it compelled to increase taxes directly affecting the people. The MP further highlighted that under the current government of President Dr. Mohamed Muizzu, no tax directly linked to the general public has been increased so far. He said the government's policies are designed to improve the economic direction and generate revenue. Manday also noted that the proposed amendment will ease burdens on businesses by removing previous obstacles, and that the government is working to amend laws in a way that does not burden citizens or businesses, thereby increasing state revenue and continuing development projects in the islands.