The Cabinet has decided to amend the existing laws to require companies earning income in US dollars to pay income tax, pensions, and customs duties in dollars. The decision was announced by Attorney General Ahmed Usham at a press conference at the President’s Office today.
Earlier today, the national bank, Bank of Maldives (BML) triggered nationwide panic by announcing the suspension of foreign transactions for cards linked to Maldivian Rufiyaa (MVR) accounts. However, the decision was reversed later the same day after the Maldives Monetary Authority (MMA) intervened and urged the bank to reconsider its stance.
At the press conference, the Attorney General noted that some companies currently pay their taxes, pensions, and customs duties in MVR, despite earning revenue in dollars. He said the Pension Act, Income Tax Act and MIRA Act will be amended to ensure that companies earning income in dollars pay their dues to the state in dollars in a bid to solve the dollar crisis faced by the Maldives. The MMA and other relevant authorities will be consulted as part of this process.
The Attorney General also highlighted concerns that some companies are profiting from the black market by selling dollars at higher rates after paying their dues to the state in MVR. Therefore, the necessary amendments to the laws will be submitted to Parliament within the next two weeks and the relevant rules will be amended within this week, he said.
Speaking at the same press conference, Finance Minister Dr. Mohamed Shafeeq referred to Maldives Immigration’s current ramped-up efforts to ensure foreigners living in the Maldives abide by the laws and regulations and said the same efforts must be applied to ensure companies operate within the law.
