Advertisement
During the MDP PG meeting. Photo/Avas

MDP issues 3-line whip to raise taxes without amendments

During the preliminary debate on the bill, the party's lawmakers supporting speaker Nasheed spoke against the bill.

19 October 2022

By Mohamed Muzayyin Nazim

MDP’s Parliamentary Group (PG) on Tuesday issued a three-line whip to pass a bill proposed by the government to increase some taxes so that government revenue can be increased amid the global economic recession.

The parliament's committee of the whole house began examining the bill submitted by the government in late August to amend the Goods and Services Tax Act so that taxes can be raised.

The MDP PG meeting held on Tuesday afternoon issued a three-line whip to pass the bill without making further changes to the government's proposal. Three members of the party's PG group confirmed to Atoll Times that the decision was made in the meeting.

The bill, submitted by Ihavandhoo MP Mohamed Shifau on behalf of the government, seeks to increase taxes from January 2023.  

  • Public Goods and Services Tax or GST - From 6% to 8%

  • TGST on tourism sector to be increased from 12% to 16%

'Very irresponsible decision'

During the parliamentary committee held Tuesday to review the bill, most of the members supported passing the bill without amendments by bringing those concerned to the parliament for further deliberations.

Some MDP lawmakers, who spoke to Atoll Times said the PG's decision was "irresponsible" when they had issued a three-line whip to pass the bill as proposed by the government, and without any amendments, fully aware that member views on the matter differed.

"When you make such big decisions, it shouldn't be rubber-stamped. It has to be discussed at length and then a decision has to be taken," said the MP, who wished to remain  anonymous.

Another member said that the opinion of the people and experts should also be consulted before passing a law exactly as the government wants it.

"But what we are trying to do is to hurry it up as instructed by the government without any research into the matter. This cannot be done like this," he said.

During the preliminary debate on the bill, the party's lawmakers supporting speaker Mohamed Nasheed spoke against the bill. Even on Tuesday, the same members opposed the decision, saying it would affect tourism and cause inconvenience to the people.

In July, the government had announced a tax increase from 2023. Finance minister Ibrahim Ameer had said at the time:

  • Due to the global economic recession, it may not be easy to get grants

  • New ventures announced in the budget to boost revenue may not yield the expected levels

  • Government may not earn as much revenue as was expected for this year 

  • Fuel prices likely to rise, causing fuel subsidy costs to rise as well 

  • State expenses will also further hike as projects are going on in full swing this year

Comments

profile-image-placeholder