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From a parliament sitting. (Photo/Parliament)

Parliament passes controversial tax hike bill

Upon ratification, the tax hike will come into effect from January.

16 November 2022

Parliament on Tuesday passed the government's proposal to increase general Goods and Services Tax (GST) and tourism service tax (T-GST) from next year amid protests from the opposition and MPs loyal to Speaker Mohamed Nasheed's faction of the main ruling Maldivian Democratic Party (MDP).

Out of the 81 MPs present in Wednesday's sitting, 55 voted in favour of the bill while 26 opposed it. No MP abstained.

Upon ratification, the tax hike will come into effect from January:  

  • GST to be hiked from 6% to 8%    

  • T-GST to be hiked from 12% to 16%

The vote came after the parliament concluded its sittings on Monday and Tuesday without calling for a vote on the bill, sparking angry reactions from pro-government MPs. 

After Nasheed concluded Tuesday's sitting without calling for a vote on the bill, pro-government MPs rushed to  Muleeage presidential residence where they held an emergency meeting with President Ibrahim Mohamed Solih. 

Coming out of the meeting and speaking to the Atoll Times journalists at the area, Aslam said the members were proposing Nasheed's removal and told the president the same in the meeting. However, neither President Solih nor himself as PG leader have any intention of doing so at this stage, Aslam said.

"We are trying to do politics with Nasheed by giving him the position, respect, status and anything else he deserves as he is a former president and the interim president of MDP," said Aslam, who has worked closely with Nasheed in the past.

Aslam, who is now in President Solih's faction, said he wanted to put aside the existing divisions and differences and work together. He added that he was doing everything possible to ensure the smooth functioning of the parliamentary group.

The opposition party had gathered outside the Parliament house on Monday and Tuesday to protest against the tax hike.

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