MP Gafoor Questions Benefit of Laws, Calls for Better Enforcement

Hanimaadhoo Constituency MP Abdul Gafoor Moosa has questioned the effectiveness of laws passed by Parliament, arguing that legislation offers little benefit to the public if it is not properly enforced.

Speaking during today’s parliamentary debate on a government-sponsored amendment to the Income Tax Act, Gafoor said Parliament had already enacted sufficient laws to support a prosperous life for Maldivians, but argued that the lack of implementation was preventing progress.

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The amendment, submitted by Mathiveri Constituency MP Hassan Zareer on behalf of the government, proposes doubling the withholding tax rate imposed on payments to non-resident contractors from five per cent to 10 per cent.

Gafoor questioned why the public was not seeing greater benefits despite government claims of increased state revenue and foreign currency inflows. He said residents in his constituency continued to face difficulties and that basic systems and services remained inadequate.

He specifically raised the situation in HDh. Hirimaradhoo, which has been designated by the government as an uninhabited island and therefore cannot hold council elections. The government previously decided to relocate Hirimaradhoo residents to Hanimaadhoo, but Gafoor said the relocation had not progressed.

According to Gafoor, the absence of a local council has left Hirimaradhoo residents without adequate access to essential services. He called on the government either to proceed with the planned relocation or allow council elections to take place so that services could be provided through a functioning local administration.

The bill’s preamble states that the proposed amendment is intended to create a more level playing field for Maldivian contractors competing with foreign contractors for construction projects in the Maldives.

Under the proposed amendment, withholding tax on payments made by Maldivian businesses to non-resident foreign contractors would increase from five per cent to 10 per cent. The tax is deducted by the local company making the payment and remitted to the Maldives Inland Revenue Authority (MIRA).

The bill proposes amendments to Section 55 of the Income Tax Act, as well as related provisions, and estimates that the change could generate an additional MVR 251 million in annual state revenue.

During the debate, MPs from the ruling People’s National Congress (PNC), which holds a parliamentary majority, backed the proposed increase, arguing that it would provide greater opportunities for local contractors and promote fairer competition with foreign firms.