Maldives hikes GST and TGST Taxes for 2023

Apex Law > Blog > Maldives hikes GST and TGST Taxes for 2023

President Ibrahim Mohamed Solih has ratified an amendment to increase the Goods and Services Tax (GST) and Tourist Goods and Services Tax (TGST) in the Maldives. The tax hike, which was proposed by the government and passed by the parliament last week, will take effect from January 2023.

The GST, which is applied to the sale of goods and services in the Maldives, will be increased from 6% to 8%, while the TGST, which is applied to the sale of goods and services to tourists in the country, will be increased from 12% to 16%. This move is expected to generate additional revenue for the government to fund public projects and services.

The government has stated that the tax hike will not significantly impact the prices of goods and services for the general public, as the increase is relatively small. However, tourists visiting the Maldives may notice a slight increase in the prices of goods and services.

The additional revenue generated by the GST and TGST increases will be used to fund various public projects and services, including infrastructure development, healthcare, and education. The government has also stated that it will strive to ensure that the additional revenue is used transparently and efficiently.

The GST and TGST hikes are part of the government’s ongoing efforts to strengthen the economy and improve the standard of living for the people of the Maldives. Despite the potential impact on tourists, the government believes that the benefits of the tax increases will ultimately outweigh any drawbacks.

After the bill was passed, Finance minister Ibrahim Ameer said on Wednesday it gives “strength to ensure financial stability and speed up the government’s efforts to meet the aspirations of the people”.

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