A robust tax system necessary to secure development funds: Zameer

Minister of Finance and Planning Moosa Zameer has said that a robust tax system is crucial to source financing for social and infrastructural development.

In the 8th meeting of the Asia Initiative which commenced in Maldives yesterday, Zameer said that participation in the Global Forum and Asia Initiative has provided necessary resources to strengthen the tax system and ensure equitability.

Zameer said that in a bid to establish a transparent system, Maldives has signed a Double Tax Avoidance Agreement with Hong Kong. This agreement will open doors for new opportunities for businesses in both countries, and create a conducive environment for investors, he said.

"We accept the challenges we face as a small nation. However, our voice is made more prominent through platforms such as Asia Initiative and provide paths forward together," Zameer said.

He emphasized that Maldives' role as co-chair of Asia Initiative is very important, assuring Maldives' commitment to fulfilling the responsibilities that come with the role. As a member of the Global Forum, Zameer noted the importance of collaboration, capacity building and inclusive deliberation.

Zameer noted that Maldives' economy is largely based on tourism, highlighting that Maldives has achieved significant success in overcoming the setbacks faced due to the Covid 19 pandemic.

As such, tourism made up 13.8 percent of GDP last year, and Maldives welcomed a record 2 million visitors within the year, he said.

Zameer further said that the Finance Ministry has compiled a mid term revenue strategy in collaboration with revenue related institutions. The aim of this strategy is to streamline current revenue policies, increase revenue and decrease dependence of foreign loans, he said.

Zameer pressed upon the importance of international cooperation at this time when currency in circulation is increasing and digital technology is advancing. He also spoke of the importance of information sharing in relation to tax avoidance and illegal outflow of money.