Ministry of Finance has revealed that it is holding discussions with the relevant authorities on increasing state revenue. The statement was made after some media outlets claimed that the government has decided to increase the Goods and Services Tax (GST).
The finance ministry stated that discussions are ongoing for means to increase state revenue but that it does not involve increasing the GST or Tourism Goods and Services Tax (TGST). The ministry stated that more information will be disclosed after the discussions have been concluded.
Every year’s state budget includes proposals to increase state revenue. This year’s state budget estimates that the Maldives will receive USD1.6 billion in revenue, with USD1 billion to be received from tax revenue and USD600 million from non-tax revenue. The Maldives is also expected to receive USD600 million in free aid.
The government has also estimated the state revenue to be received from newly implemented laws and regulations this year including the tax on plastic bags, leasing of new islands for resort development and real estate tourism, as well as selling a portion of newly reclaimed land to citizens. Some of these laws have already been enacted.