Income tax, pension and Customs duty to be collected in US Dollars

Cabinet of Ministers have decided to change the country's regulations to collect income tax, pension contributions and Customs' duties in US Dollars from businesses which earn revenue through foreign currency.

In a press conference held this evening at the President's Office, Attorney General Ahmed Usham revealed that amendments will be brought to the Pension Act, Income Tax Act as well as the MIRA Act in order to alleviate the national dollar shortage.

He said that during today's cabinet meeting, important decisions were made regarding this issue. He added that some companies earning dollar revenue pay the state in Maldivian Rufiyaa, and even income tax is sometimes paid in Rufiyaa.

"We will rectify this by changing the government's laws and regulations. The Cabinet has decided to change that. That is, to have companies earning income in dollars to pay the government in dollars from now on," he said.

Usham said that the employees of the companies that earn income in dollars are also paid in dollars. However, these companies have their pension contributions made in Maldivian Rufiyaa, he pointed out. This is also something the government has decided to change, he said.

"If salaries are paid in dollars, we will determine that pensions will also have to be paid in dollars. We will consult with the MMA and MIRA and bring necessary amendments to the laws in the near future," Usham said.

Usham added that the employees of the companies that earn income in dollars are also paid in dollars. However, the pension is paid in Dhivehi rufiyaa, he said. Therefore, the Cabinet has decided to change that, he said.

Companies earning in dollars will also be required to pay income tax, pensions and customs duties in dollars, he said.

The Attorney General stated that such changes are necessary because it has become evident that dollars are being sold on the black market to secure funds for government payments.

The Attorney General's Office plans to complete the amendment within the next two weeks and submit it to Parliament. If any related regulations need to be amended, they will be addressed within the coming week, he said.