Maldives to tax migrant workers

The parliament approved Wednesday a new bill imposing a tax of three percent on remittances sent abroad by the Maldives’ expatriate labour force.

The amendment to the Employment Act makes it mandatory for employers to deposit salaries of expatriate workers with local banks. A tax of three percent will be collected on any money wired abroad.

Some 41 MPs voted in favour, while 25 MPs, mainly of the main opposition Maldivian Democratic Party voted against the bill.

Human rights advocates have criticised the tax, noting it will affect the most poor and vulnerable groups here.