Introduction of a western tax regime in the Maldives is a success story. Agree.
But, taxation in all countries alike are used to finance the functioning of the state as well as to ensure the implementation of the macroeconomic objective of equal distribution of income and wealth.
It requires a direct tax called income tax to be levied on the rich so that the funds can be used to run the social welfare schemes for the poor.
Finance Minister Ahmed Munawwar has appreciated the tax regime but had never mentioned anything about the fairness of the existing GST.
Countries have a mixture of both direct and indirect taxes where the direct taxes are usually responsible for equal distribution and the indirect taxes ensure that everyone is responsible for the functioning of the state.
But in Maldives where everyone pays GST, you don't find Income Tax taken from the rich and hence the rich become richer.
Minister didn't tell you about it.
