MPs , deliberating on the government proposal to amend Maldives Import Export Act and waive the import duty levied on certain goods, have expressed that cooking gas and equipments imported for agricultural development must be included in the list of items that are to be made tax exempt.
Most MPs who deliberated on the urgent bill proposed by the government expressed support to accept the bill. They expressed support to send the bill to Majlis standing committee on financial affairs for further evaluation and noted the importance of an expeditious endorsement by the Majlis.
MPs noted that the bill was initially submitted to the previous Majlis and that it lacked the changes made to the bill by previous financial committee. They said if the changes brought by the previous committee were included, work of the present financial committee would be easier paving way for a quick endorsement of the bill.
MPs who spoke on the bill were generally in support of reducing tax in order to reduce cost of living. They said that even import tax is waived from diesel and essential food items, the people would not get any meaningful benefits, if the current dollar shortage leading to rise in dollar value is not adequately addressed.
They expressed concern over the spontaneous tabling of the bill and said even though it was sent in as an urgent bill; it can only be endorsed after committee on financial affairs completes evaluations.
MP for Mulaku region Abdulla Yamin said that he did not have adequate time to study the bill properly. He expressed hope that chair would give more consideration to providing MPs with adequate time to prepare and evaluate bills before they are tabled.
MP Yamin said the bill was initially proposed to the previous Majlis by the previous government and that the bill lacked certain amendments brought by the previous financial committee. He noted that when this year’s budget was presented, the government anticipated a 40 percent reduction in earnings and that when the import taxes are waived as proposed in the bill, the revenue loss would be further increased.
He said it would be more appropriate, at a time when global economy is on the down turn, for the government to send in a bill on introducing taxation instead of a bill on waiving import duties. He said introducing tax would increase government revenue.
He said he was in support of reducing import duty on food items and asked the economic development minister how much of an impact the lowering of import duties on food items would have on the food prices in the market.
He also said despite lowering of import duties on food items, an appreciable reduction in market prices will not be achieved, if the current dollar shortage problem is not solved. He questioned why the government was not thinking on reducing duties on cooking gas when duties of diesel are being reduced and electricity unit cost are not being lowered.
MP for Hulhuhenveiru region Moosa Manik said that it is important that the Majlis financial committee while considering the bill think in the lines followed by the previous committee. He criticized DRP, PA collation members for criticizing the bill. He said while there are those who consider reducing import duties on meat and diesel would benefit resort owners, they must take in to consideration the fact that goods are being transported to island using diesel powered engines.
MP for Ungoofar region Dr. Afrasheem Ali said that bill must be evaluated by technical people and that every bill must directed towards protecting the best interests of the people and that benefits of the bill should reach all citizens and not certain group of people. In this regard, he said waiving import duty on cooking gas and construction materials will benefit each and every citizen.
MP for Laamu Gan region Mohamed Yousuf welcomed the government’s proposal to waive duty on diesel and food items but questioned whether it was best for the country. He also noted that import duties on agricultural items should also be waived.
MP for Ihavandhoo region Ahmed Abdulla said that it is hard to believe that reducing import duty on goods will not affect market prices and that traders are sympathetic people who have the best interests of the people at heart. He further said if the traders are not lowering the market prices, trade ministry must intervene and establish a mechanism to prevent traders from charging unacceptable prices. Further more, he said just because some traders stand to gain more by the proposed reduction in import duties, it is unacceptable to deny the benefits to other people.
MP for Faresmaathoda region Ibrahim Muthalib proposed to increase tax levied on pork and alcoholic beverages by 300 percent. He said high number of smuggling of alcoholic beverages in to Male’ would be greatly reduced when prices are increased. He also said in addition to diesel, 5 percent reduction in all other types of fuel oil should be made.
Economic development minister Mohamed Rasheed, responding questions from MPs thanked the Mps for their rich debate and called on the committee to further evaluate the bill and finally endorse it.
He informed that even though inflation in 2007 and 2008 remained above 10 percent, the rate has dropped to single digit in the first 5 months of this year. He said the government fiscal policy would benefit the people.
He said the bill was very technical and that the previous financial committee’s changes were acceptable to him. He also said those changes were not incorporated as the Majlis contained mostly new MPs. He urged the financial committee to consider the work of its predecessor when evaluating the bill.
He said if endorsed, the government stands to loose Rf. 500 million from its earnings and that this was as anticipated in the budget endorsed by the Majlis for this year. He said during the past 6 months imports was reduced by 6 percent and that he did not anticipate any problems even with proposed duty cuts. He also said when the Majlis endorse the corporative tax bill; the people will have a brighter future.
Some 21 members debated on the bill yesterday and more members were waiting to speak when the chair adjourned the sitting, having run out of allocated time. President Nasheed submitted 4 bills to the Majlis yesterday. The 4 bills are Bill on Business Profit Tax, Bill on Administration of Taxation, Bill on Decentralized Administration and Bill on Local Council Election.
Most MPs who deliberated on the urgent bill proposed by the government expressed support to accept the bill. They expressed support to send the bill to Majlis standing committee on financial affairs for further evaluation and noted the importance of an expeditious endorsement by the Majlis.
MPs noted that the bill was initially submitted to the previous Majlis and that it lacked the changes made to the bill by previous financial committee. They said if the changes brought by the previous committee were included, work of the present financial committee would be easier paving way for a quick endorsement of the bill.
MPs who spoke on the bill were generally in support of reducing tax in order to reduce cost of living. They said that even import tax is waived from diesel and essential food items, the people would not get any meaningful benefits, if the current dollar shortage leading to rise in dollar value is not adequately addressed.
They expressed concern over the spontaneous tabling of the bill and said even though it was sent in as an urgent bill; it can only be endorsed after committee on financial affairs completes evaluations.
MP for Mulaku region Abdulla Yamin said that he did not have adequate time to study the bill properly. He expressed hope that chair would give more consideration to providing MPs with adequate time to prepare and evaluate bills before they are tabled.
MP Yamin said the bill was initially proposed to the previous Majlis by the previous government and that the bill lacked certain amendments brought by the previous financial committee. He noted that when this year’s budget was presented, the government anticipated a 40 percent reduction in earnings and that when the import taxes are waived as proposed in the bill, the revenue loss would be further increased.
He said it would be more appropriate, at a time when global economy is on the down turn, for the government to send in a bill on introducing taxation instead of a bill on waiving import duties. He said introducing tax would increase government revenue.
He said he was in support of reducing import duty on food items and asked the economic development minister how much of an impact the lowering of import duties on food items would have on the food prices in the market.
He also said despite lowering of import duties on food items, an appreciable reduction in market prices will not be achieved, if the current dollar shortage problem is not solved. He questioned why the government was not thinking on reducing duties on cooking gas when duties of diesel are being reduced and electricity unit cost are not being lowered.
MP for Hulhuhenveiru region Moosa Manik said that it is important that the Majlis financial committee while considering the bill think in the lines followed by the previous committee. He criticized DRP, PA collation members for criticizing the bill. He said while there are those who consider reducing import duties on meat and diesel would benefit resort owners, they must take in to consideration the fact that goods are being transported to island using diesel powered engines.
MP for Ungoofar region Dr. Afrasheem Ali said that bill must be evaluated by technical people and that every bill must directed towards protecting the best interests of the people and that benefits of the bill should reach all citizens and not certain group of people. In this regard, he said waiving import duty on cooking gas and construction materials will benefit each and every citizen.
MP for Laamu Gan region Mohamed Yousuf welcomed the government’s proposal to waive duty on diesel and food items but questioned whether it was best for the country. He also noted that import duties on agricultural items should also be waived.
MP for Ihavandhoo region Ahmed Abdulla said that it is hard to believe that reducing import duty on goods will not affect market prices and that traders are sympathetic people who have the best interests of the people at heart. He further said if the traders are not lowering the market prices, trade ministry must intervene and establish a mechanism to prevent traders from charging unacceptable prices. Further more, he said just because some traders stand to gain more by the proposed reduction in import duties, it is unacceptable to deny the benefits to other people.
MP for Faresmaathoda region Ibrahim Muthalib proposed to increase tax levied on pork and alcoholic beverages by 300 percent. He said high number of smuggling of alcoholic beverages in to Male’ would be greatly reduced when prices are increased. He also said in addition to diesel, 5 percent reduction in all other types of fuel oil should be made.
Economic development minister Mohamed Rasheed, responding questions from MPs thanked the Mps for their rich debate and called on the committee to further evaluate the bill and finally endorse it.
He informed that even though inflation in 2007 and 2008 remained above 10 percent, the rate has dropped to single digit in the first 5 months of this year. He said the government fiscal policy would benefit the people.
He said the bill was very technical and that the previous financial committee’s changes were acceptable to him. He also said those changes were not incorporated as the Majlis contained mostly new MPs. He urged the financial committee to consider the work of its predecessor when evaluating the bill.
He said if endorsed, the government stands to loose Rf. 500 million from its earnings and that this was as anticipated in the budget endorsed by the Majlis for this year. He said during the past 6 months imports was reduced by 6 percent and that he did not anticipate any problems even with proposed duty cuts. He also said when the Majlis endorse the corporative tax bill; the people will have a brighter future.
Some 21 members debated on the bill yesterday and more members were waiting to speak when the chair adjourned the sitting, having run out of allocated time. President Nasheed submitted 4 bills to the Majlis yesterday. The 4 bills are Bill on Business Profit Tax, Bill on Administration of Taxation, Bill on Decentralized Administration and Bill on Local Council Election.
Comments