Dr. Mohammed Amin Adam, Ranking Member on the Finance Committee of Parliament and former Minister for Finance, has strongly criticised the government’s decision to reintroduce the Sustainability Levy, arguing that it unfairly penalises businesses.
Speaking during the approval of the 2025 budget estimates in Parliament on Wednesday, March 26, Dr. Amin Adam accused the government of stifling private sector growth through excessive taxation.
He argued that businesses should not be punished for making profits, as they play a crucial role in job creation and economic development.
“It is not a crime for businesses to make profits,” Dr. Amin Adam declared. “Instead of creating a conducive environment for investment and expansion, this government is imposing yet another levy that discourages growth.”
He also raised concerns about the financial implications of extending the sunset clause for category A companies from 2025 to 2028.
These companies, which include banks, non-bank financial institutions, breweries, insurance companies, bulk oil distribution companies, oil marketing companies, electronic money issuers, telecommunications companies, and shipping lines, will now be required to pay a 5% levy on profit before tax.
Dr. Amin Adam questioned the rationale behind the levy, noting that the government had not provided a clear justification for its return.
“Where is the transparency in fiscal management? Why is this administration constantly resorting to taxation instead of implementing prudent economic policies?” he asked.
He warned that such policies would ultimately lead to increased prices for consumers and a decline in business confidence, urging Parliament to resist the measure.
He called for businesses to be incentivised to reinvest their earnings, rather than being overburdened with additional levies.
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