MP Saleem backs stricter penalties for tax evasion
Saleem added that the country faces challenging economic years ahead, and recovering unpaid taxes is critical to managing debt and funding public services.
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Ahmed Saleem, Member of Parliament for Eydhafushi and a representative of the People's National Congress (PNC), has expressed strong support for the government’s proposed amendments to the tax law, which include the introduction of prison sentences and significant fines for tax evasion.
Businessman Saleem made the remarks during a parliamentary debate on the bill on Wednesday. He stated that he was fully in favour of the penalties outlined in the proposal, which are aimed at addressing gaps in enforcement and reducing losses in state revenue.
"In many countries around the world, tax rates are much higher — 50%, 40%, even 30%," he said. "In comparison, the tax rate in Maldives is not high. It is a level that the state considers sufficient."
Despite the relatively low tax rates, Saleem said there are still individuals and businesses who intentionally avoid paying taxes. He identified this as a serious issue, noting that tax evasion contributes to significant annual revenue loss for the government.
"It’s not accidental. Those who pay taxes do so properly. But those who don’t are doing it deliberately," he said. "The state is still owed approximately MVR 15 billion in unpaid taxes. This directly affects the government’s ability to meet its financial obligations."
Saleem added that the country faces challenging economic years ahead, and recovering unpaid taxes is critical to managing debt and funding public services.
"The penalties proposed in this bill are appropriate. Even if I were to fail to pay my taxes, I should be jailed. I have no issue with that," Saleem said. "If I cheat on my taxes, I should be held accountable."
He further stated that the proposed amendments would only impact those who attempt to evade taxes, not those who comply with the law.
“This will only be an issue for those who engage in dishonest practices. For those who are operating transparently, this bill poses no problem,” he said.
Saleem concluded by noting that the original purpose of the tax system was being undermined by widespread non-compliance and that stricter enforcement was necessary to restore its intended function.
