Finance Minister Mohamed Shafeeq has told Parliament that the Mohamed Muizzu administration plans to implement its strategy to tackle mounting debt while minimising the impact on citizens. Speaking to the Public Accounts Committee of Parliament, Minister Shafeeq highlighted the need for sustainable debt management and revenue enhancement.
Minister Shafeeq acknowledged that the Maldives faces significant foreign debt obligations in 2025 and 2026. He underscored the urgency of a comprehensive plan, noting the strain of servicing these debts. “We cannot move forward without a sustainable debt management strategy,” he asserted.
To address these challenges, the government plans to implement fiscal reforms. Minister Shafeeq assured the public that the burden would not fall on taxpayers. “We aim to avoid increasing the tax burden on the public,” he stated. However, he added that the administration intends to broaden tax bases to boost revenue.
The Muizzu administration proposes several tax adjustments, including raising the Airport Development Fee, Departure Tax, Green Tax, and taxes and duties levied on unhealthy products, including cigarettes, vaping devices, and energy drinks. The Airport Development Fee is currently deposited in the Sovereign Development Fund (SDF).
Minister Shafeeq said that any changes to tax rates and bases would involve consultation with stakeholders. While Minister Shafeeq assured that the public would not be burdened with the tax hikes, the medium-term revenue strategy report, published in June, outlines plans to review GST and Green Tax rates.
At the committee meeting, Deputy Finance Minister Ahmed Saaid Musthafa highlighted the positive impact of reforms to the universal healthcare insurance scheme, Aasandha. These changes aim to reduce costs without adversely affecting the general public, he assured.