Muizz says won't change existing taxes, rates

Opposition PPM-PNC presidential candidate Dr Mohamed Muizz said on Sunday that the existing tax rate and taxes will not be changed in his government. 

The government had in January increased Goods and Services Tax (GST) from 6% to 8% and Tourism-GST (T-GST) from 12% to 16%.

The move has been heavily criticised by the opposition. Some of the candidates contesting the September 9 presidential election has also proposed to reduce the GST rate, and to offer tax breaks for Small and Medium Enterprises (SMEs) operating in the outer atolls to incentivise their businesses.

Because government-owned companies control much of the business, SMEs have limited opportunities to grow. In an exclusive interview with Atoll Times during his ongoing campaign visit to Gaafu Dhaalu Atoll, Muizz said his government will give high priority to the development of small and medium enterprises.

However, Muizz said he would not change the current taxes under any circumstances, whether to create a favourable environment for small and medium-sized businesses or for any other purpose.

“I don't intend to raise any tax ceiling,” Muizz said.

"I think the biggest thing that can be done is to reduce the number of bids from government companies or to limit the exposure of government companies in government projects."

Instead, Muizz's vision is to limit the opportunities available to state-owned companies and increase the opportunities for small businesses. He cited some examples:

Muizz said the number of bids allowed for state-owned companies could be reduced or the opportunities available to bid for government projects could be restricted.

Small and medium enterprises can also be given contracts to supply goods for government projects, he said.

"In the supply part, [for example, RDC supplying goods to MTCC] a mandatory approach could be made to give that part to small and medium-sized companies. There will be more," he said.