GST from telecom services to take effect from midnight

Goods and Services Tax (GST) on telecommunication services will come into effect starting 12:00 a.m. on Thursday, 1 May 2014.

The eleventh amendment bill to the Goods and Services Tax Act, allowing the collection of a 6 percent taxation on telecommunication services, was published in the Government Gazette on 25 March.

Introduction of telecom GST comes as a move by the new government to increase revenue. The State’s principal tax collector, Maldives Inland Revenue Authority (MIRA) estimates to gain MVR 110 million through Goods and Services Tax this year.