It’s not a crime for businesses to make profits - Amin Adam chastises gov’t over reintroduction of sustainability levy

Dr. Mohammed Amin Adam, a former Finance Minister, criticized the government for reintroducing the Sustainability Levy. He believes it unfairly penalizes businesses.

During the approval of the 2025 budget estimates on March 26, he accused the government of hindering private sector growth through excessive taxation.

He stated that businesses should not be punished for making profits. They are essential for job creation and economic development.

“It is not a crime for businesses to make profits,” Dr. Amin Adam said. He added that instead of fostering investment, the government imposes levies that discourage growth.

He also mentioned that extending the sunset clause from 2025 to 2028 would significantly impact category A companies. These companies will now pay a 5% levy on profit before tax.

These include banks, non-bank financial institutions, breweries, and insurance companies. Other affected sectors are bulk oil distribution, oil marketing, electronic money issuers, telecommunications, and shipping lines.

Dr. Amin Adam questioned why the levy was reintroduced without clear justification from the government. “Where is the transparency in fiscal management?” he asked.

He expressed concern about this administration's reliance on taxation over prudent economic policies. Such measures could lead to higher prices for consumers and lower business confidence.

He urged Parliament to reject this measure. Businesses should be encouraged to reinvest their earnings instead of facing additional levies.