The Parliament, on Wednesday, passed the Income Tax bill and will start collecting taxes from January 1, 2020.
The bill was initially submitted to Parliament on October 15 by Ungoofaaru MP Mohamed Waheed Ibrahim (Wadde), on behalf of the state.
After reviewing the bill, the Parliamentary Committee of the Whole House proposed over 20 amendments. A total of 68 members present in Wednesday's session approved the bill along with the committee's suggestions. Three members voted against the bill.
The most notable amendment proposed by the committee was starting the collection of tax from salaries on April 1, 2020, although other forms of income will be taxed from the first of next month.
Furthermore, the amendment details that starting from April 1, income tax will be imposed on salary, business profits, revenue generated by leasing movable and immovable assets, dividend, interest, annuity, pension and retirement benefits, salary earned by beneficiaries, technical service fee, commissions and royalties.
Ministry of Finance formerly estimated that, should the bill be passed without further amendments, the state is poised to generate a revenue of MVR 680 million. The budget proposed for next year is inclusive of said MVR 600 million estimates.
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