Parliament begins reviewing GST hike bill
International Monetary Fund (IMF) and the World Bank had earlier welcomed the proposal, which was initially announced by the government in July.
By
Mohamed Muzayyin Nazim
Parliament on Wednesday began reviewing a bill proposed by the government to hike Goods and Services Tax (GST) in a bid to increase state revenue.
The first reading of the bill submitted by the government in late August to amend the Goods and Services Tax Act was held in Wednesday's sitting.
The reason for submitting the bill, sponsored by Ihavandhoo MP Mohamed Shifau, includes:
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Increase state revenue due to state expenditure policies and the global economic downturn
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Increase the GST rates levied on both tourism businesses and those in general sectors
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If these measures are not taken, revenue will not be enough to cover recurrent expenditures
The government had proposed to hike from January 2023:
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GST on general businesses - from 6% to 8%
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GST on tourism businesses or TGST as it is commonly known - from 12% to 18%
After the first reading of the bill:
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Preliminary debate on the bill to begin next week in parliament floor
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The bill will then be reviewed by the committee and submitted to the parliament floor for review.
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The bill will be sent to the president for ratification after it is passed by the parliament floor
International Monetary Fund (IMF) and the World Bank had earlier welcomed the proposal, which was initially announced by the government in July.
