Sale of land to be subjected to GST starting Thursday

Collection of Goods and Services Tax (GST) from the sale of land and apartment flats will begin from 12:00 a.m. on Thursday, 1 May 2014.

First Amendment Bill to the Goods and Services Tax Act, facilitating the collection of GST from land and apartment flats, was passed by the Parliament on 4 February and published in the Government Gazette on 6 February.

Although the law does not exempt GST from land and housing flats sold by the government, the ruling Progressive Party of Maldives (PPM) has recently proposed a bill seeking such an exemption. Proposed by Maavashu MP Abdul Azeez Jamaal Aboobakuru, the bill offers to exempt the sale of social housing flats by the government, or a third party, from the GST.

GST on telecommunication services will also come into effect at 12:00 a.m. on Thursday.