Dr. Mohammed Amin Adam, Ranking Member on the Finance Committee of Parliament and former Minister for Finance, has strongly criticized the government’s decision to reintroduce the Sustainability Levy. Apexnewsgh reports
He argues that this move unfairly penalizes businesses and stifles private sector growth with excessive taxation.
According to Dr. Amin Adam, the extension of the sunset clause from 2025 to 2028 will have significant financial implications for Category A companies. These include banks, non-bank financial institutions, breweries, insurance companies, and telecommunications companies, among others, which will now be required to pay a 5% levy on profit before tax.
Dr. Amin Adam questions the rationale behind the levy, stating that the government has failed to provide a clear justification for its return. He emphasizes the need for transparency in fiscal management and criticizes the government’s reliance on taxation instead of implementing prudent economic policies.
The former Minister warns that such policies will ultimately lead to increased prices for consumers and a decline in business confidence. He urges Parliament to resist the measure, arguing that businesses should be incentivized to reinvest their earnings rather than being overburdened with additional levies.
This debate comes on the heels of Parliament’s recent decision to repeal the Electronic Transfer Levy (E-Levy), a move aimed at reducing the financial burden on households and businesses. The E-Levy was introduced in 2022 to tax electronic transactions, but its repeal is expected to boost disposable income and stimulate economic activity.
Source: Apexnewsgh.com
