Tax evaders must be jailed, even if it were me: Saleem

MP for Eydhafushi constituency Ahmed Saleem (Redwave Saleem) has stated today that tax evaders must be jailed, even if it were him, stating that this should not raise concerns if taxes are being paid regularly.

Saleem made these comments while speaking in today's debate in parliament on the bill of amendments to the Tax Administration Act, which would see MIRA granted more authority to take stricter measures in cases of tax evasion.

Saleem, whose business operates a large number of shops in Male', said that making tax evasion penalties stricter would raise concerns amongst those who tamper with customs invoices and otherwise cheat.

However, it is of no issue to those who work honestly, he said.

Saleem stated that while the introduction of taxes in the Maldives was driven by good intentions, those goals are being undermined by the growing number of individuals who evade or cheat the system.

"If something is publicized, then we must act in accordance with that. Those who pay tax do so regularly. But those who don't pay taxes just continue doing so," he said.

"So when a bill like this is put forward, we should not in any way obstruct it. Failure to pay tax affects the State's revenue. The purpose should be to have taxes paid regularly."

Saleem estimates that even at present, there is about MVR 15 billion owed in taxes to the State. Saleem highlighted the added challenges the State will face if there remains such large amounts of unpaid tax when the State is required to pay USD 1 billion in debt repayment next year.

"There will be no way of repaying the debt. This money doesn't fall from the skies. It is from taxes that debts are repaid and other expenses are covered," Saleem said.

Saleem pressed upon the importance of implementing the penalties laid out in the bill for tax evaders. In his opinion, taxes charged in Maldives are not excessive.

"In some other countries, they even charge 50 percent as taxes. Or 40 percent or 30 percent. When we consider the taxes in Maldives, it is not that high. Taxes are set at rates that befit the country," Saleem said.