MIRA concedes profit tax challenges following door-to-door push
07 Jul 2011, 9:37 PM
Aishath Shazra
The Maldives Inland Revenue Authority (MIRA) has taken a door-to-door approach in trying to prepare Maldivian enterprises for the introduction of a new Business Profit Tax (BPT) that comes into effect on July 18. MIRA says informing and registering every national enterprise in the country under the scheme will be a considerable challenge.
The BPT is to be charged to all businesses operating in the Maldives,that makes a profit of more then Rf500,000 (US $32,425). The tax will be a first for companies operating in the Maldives, a country that launched a similar 3.5 percent Tourism Goods and Services Tax on all travel industry income as of January 1 this year.
Business owners and industry representatives, while said to generally welcome direct revenue in the country, have called for a gradual introduction of financial reforms like the BPT, which are being sought by the government to balance national budget deficits and protect smaller enterprises.
Under the present BPT system, businesses that make a profit of more than Rf500,000 (US$32,425) will be asked to pay 15 percent of their earnings to the state. This sum will effectively rule out small businesses operated by individuals and places like corner shops that mainly caters to the local residents from having to pay BPT.
Become a member
Get full access to our archive and personalise your experience.
Already a member?
Discussion
No comments yet. Be the first to share your thoughts!
No comments yet. Be the first to join the conversation!
Join the Conversation
Sign in to share your thoughts under an alias and take part in the discussion. Independent journalism thrives on open, respectful debate — your voice matters.
