Minister of Economic Development Fayyaz Ismail has said tax authorities must stop taking Remittance Tax.
Speaking to the press, the economic minister stated the tax levied on remittances abroad need not be imposed as the tax is not in any way beneficial to the state. Remittance Tax is a form of tax imposed on money transferred out of the Maldives by foreigners employed in the country.
Remittance Tax is collected at the rate of 3% from the amount of money sent abroad by expatriates. It came into effect on October 1, 2016 under pursuant to the Fifth Amendment to the Employment Act.
The minister further stated that it is not acceptable to impose Remittance Tax on foreigners as the country is under international obligations in matters related to expatriate workers.
The Maldives Inland Revenue Authority (MIRA) has collected USD 4.5 million in August and USD 4.6 million for the month of July as remittance tax.