Nasheed says government should expand the tax base instead of raising GST and other taxes

Former President Mohamed Nasheed said Friday that the government should focus on expanding the tax base and increasing the number of taxpayers instead of raising tax rates to boost state revenue.

Speaking at the official launch of Maafushi’s new tourism destination brand, Nasheed said the island’s development stems from the determination of its residents to improve their own circumstances. He noted that around 20 percent of all tourists visiting the Maldives each year stay in Maafushi, making government‑led projects on the island highly impactful.

The way to increase government profits and revenue is not to increase taxes, not to raise GST by another two percent, but to expand the tax base and increase the number of taxpayers,” Nasheed said.

He argued that dredged lagoons near Maafushi and other islands remain unused, and that providing basic services such as electricity and water to these areas would naturally attract investment, broaden the taxpayer base, and generate revenue without raising taxes.

Nasheed added that such development would support not only tourism but other sectors as well.

“We can identify what needs to be done to increase productivity, and government policies should facilitate that,” he said.

He also urged residents to recycle waste, use organic material as fertilizer, and treat wastewater for reuse. Road development in Maafushi, he said, should preserve the island’s natural character.

“Development is not concrete, development is a change within ourselves,” Nasheed said.

Before taking office, President Dr. Mohamed Muizzu pledged to expand the tax base rather than introduce or increase taxes. However, several taxes, including the airport departure tax, green tax, and TGST, have since been raised.