Bill regarding increase of TGST to 15 percent withdrawn

The bill proposed by the government, regarding the increase of Tourism Goods and Services Tax (TGST) from 8 to 15 percent and the imposition of GST on diesel and petrol, has been withdrawn.

The bill, submitted by Vilufushi MP Riyaz Rasheed on behalf of the government, was withdrawn after a two-hour debate at the parliament today.

Riyaz raised several concerns regarding the bill while presenting it to the parliament today.

Detailing the reasons for withdrawing the bill, Riyaz said that pro-government MPs, opposition MPs and independent MPs had voiced several concerns regarding the bill. He said that the government would act according to the parliament’s decision on this matter.

The bill proposing amendments to the GST Act states that TGST would be increased from 8 percent, as imposed since 1 January 2013, to 15 percent from 1 June 2013. It also proposes to remove diesel and petrol from the list of items exempted from GST.

Pro-government MPs as well as members of the opposition Maldivian Democratic Party (MDP) Parliamentary Group severely criticised the amendment to impose GST on diesel and petrol at the parliamentary debate on the bill today.