Minister of Finance Ibrahim Ameer has stated that the passing of the amendment bill to the Goods and Services Tax Act will strengthen the government’s development initiatives.
In a tweet, Minister Ameer said the government has set an example for other countries in how to overcome the economic challenges due to the COVID-19 pandemic and continuing with infrastructure and social development. He said the passing of the amendment bill is a support for sustainable financial management and meeting the expectations of the people.
The Parliament of the Maldives passed the government-proposed amendment bill to increase the tax rates from January 2023. The amendment bill passed with 55 votes in favour and 26 votes against. Parliamentarian Mohamed Shifau proposed the Bill on Amendment to the Goods and Services Tax Act on behalf of the government to increase the Goods and Services Tax (GST) and Tourism Goods and Services Tax (TGST) in an effort to increase state revenue. The government approved the amendment bill to increase TGST from 12% to 16% and increase Goods and Services Tax (GST) from 6% to 8%. The government expects to generate USD63 million from GST and USD136 million from TGST by next year. Therefore, the tax changes are expected to generate total revenue of USD195 million.