Chief Financial Budget Executive at the Ministry of Finance Saruvash Adam has said that the tax increment will reduce the dependence on the tourism industry.
Speaking to PSM News highlighting the arrangement of the state budget and the priorities for next year, Saruvash said the global economic slowdown is also affecting the Maldives as well. Therefore, he said the country needs to find ways to increase revenue to overcome the economic slowdown. Additionally, he said that increasing the Goods and Service Tax (GST) and Tourism Goods and Service Tax (TGST) is an important step to be taken at this juncture. He added that increasing the tax rates is a necessary decision for the time being.
Additionally, Saruvash said the vitality of the tourism industry as well as other industries needs to be increased to manage and sustain the economy of the Maldives. He highlighted the importance of reducing the dependence of the economy on tourism and increasing income from other sectors.
Furthermore, Saruvash said the government would take whatever steps are necessary with the economic shocks. He noted that such measures were taken to hold the economy even during the COVID-19 pandemic. He also said the tax increase would reduce the dependence on tourism.
The government has proposed a budget of USD2.76 for 2023. The government is expected to receive USD2 billion in revenue, of which 70% will come from taxes. The state is expected to receive a total of USD1.5 billion in taxes next year.