Committee passes to raise income tax minimum to MVR 60,000

Parliament Committee has passed to raise the minimum income bracket for individual income tax up to MVR 60,000.

The decision was made at the Whole House Sub Committee session held today during which MDP parliamentary group leader, Ali Azim suggested six revisions to the Bill.

The committee passed to take taxes on income between MVR 60,000 – MVR 100,000 at 5.5 percent, MVR 100,000 – MVR 150,000 at 8 percent, MVR 150,000 – MVR 200,0000 at 12 percent and MVR 200,000 plus at 15 percent.

These are drastic changes in comparison to how the Bill was submitted by the government.

Initially the bill pushed to take taxes on income between MVR 40,000 – MVR 60,000 at 8 percent, MVR 60,000 – MVR 100,000 at10 percent and MVR 100,000 plus at 15 percent.

Speaker of Parliament said that this bill needed to be passed before the proposed 2020 budget was passed.