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

Dr. Mohammed Amin Adam is the Ranking Member on the Finance Committee of Parliament. He is also a former Minister for Finance. He has criticized the government for reintroducing the Sustainability Levy. He argues that this levy unfairly penalizes businesses.

During a budget approval session on March 26, he spoke out against excessive taxation. He believes this taxation stifles private sector growth. Dr. Amin Adam 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,” he declared. Instead of fostering investment, the government imposes levies that discourage growth.

He noted that extending the sunset clause from 2025 to 2028 will have serious financial effects on category A companies. These companies will now pay a 5% levy on profit before tax.

Category A includes banks, non-bank financial institutions, breweries, and insurance companies. It also covers bulk oil distribution companies, oil marketing firms, electronic money issuers, telecommunications companies, and shipping lines.

Dr. Amin Adam questioned why the government reintroduced this levy without clear justification. “Where is the transparency in fiscal management?” he asked. He criticized the administration's reliance on taxation instead of sound economic policies.

He warned that these policies could raise consumer prices and lower business confidence. Dr. Amin Adam urged Parliament to reject this measure. Businesses should be encouraged to reinvest their earnings rather than face more levies.