Comment: Income tax a necessary step to combat corruption

Corruption has spread and taken root in the Maldives to extreme levels. Corruption allegations can be levelled everywhere. This evil disease has become common in state institutions, government offices, public companies as well as private companies and businesses. As a result of corruption allegations against persons filling high posts of state institutions, public confidence in these institutions are lost and instead of places with public respect it becomes the target of public ridicule.

The loss of public funds and opportunities for the public due to corruption is increasing daily. If Rf1,000,000 of public money is spent to purchase a generator instead of the Rf700,000 that should actually have been spent, the public ends up losing Rf300,000. If this Rf300,000 is not pocketed by employees, it could have been spent on other projects for the public. In this vein, we can only imagine the amount of money that is lost on a national level.

If an employee of a private business sells goods at a higher price and deposits the difference into his personal bank account, the business is going to go bankrupt instead of developing and prospering. While the shopkeeper who is employed with a salary Rf4,000-a-month builds two dhonis of his own, the owner of the shop goes bankrupt. If businesses do not lose money in this manner, national productivity is going to rise.