Tax hike bill ratified; to increase from January 2023
GST will be hiked from 6% to 8% and T-GST from 12% to 16%
President Ibrahim Mohamed Solih on Tuesday ratified an amendment, increasing general Goods and Services Tax (GST) and tourism service tax (T-GST) from next year.
The parliament passed the government's proposal to hike the tax last week passed amid protests from the opposition and MPs loyal to Speaker Mohamed Nasheed's faction of the main ruling Maldivian Democratic Party (MDP).
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%
Finance minister Ibrahim Ameer has welcomed the bill's passage through the parliament, saying it was a "strength to ensure financial stability and speed up the government's efforts to meet the aspirations of the people".
According to him:
-
Government has set an example to the world by overcoming the economic crisis of the last few years
-
Despite the challenges faced, several infrastructure and social development projects have been carried out across the country with equality.
