Dr Mohammed Amin Adam, the Ranking Member on the Finance Committee of Parliament and a former Minister for Finance, has strongly criticised the government for reintroducing the Sustainability Levy, arguing that it unfairly penalises businesses.
Speaking during the approval of the estimates of the 2025 budget statement in Parliament on Wednesday, 26th March, he accused the government of stifling private sector growth with excessive taxation.
He insisted 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 further argued that the extension of the sunset clause from 2025 to 2028 would have significant financial implications for category A companies, which will now be required to pay a 5% levy on profit before tax.
“These companies include banks, non-bank financial institutions, breweries, insurance companies, bulk oil distribution companies, oil marketing companies, electronic money issuers, telecommunications companies, and shipping lines, among others,” he noted.
Dr Amin Adam also questioned the rationale behind the levy, stating that the government had failed to provide 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 further warned that such policies would ultimately lead to increased prices for consumers and a decline in business confidence.
He urged Parliament to resist the measure, arguing that businesses should be incentivised to reinvest their earnings rather than being overburdened with additional levies.
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