Bill on GST and TGST hike sent to parliamentary committee

The Parliament on Tuesday voted in favor of accepting a government bill designed to increase Goods and Service Tax (GST) and Tourism Goods and Service Tax (TGST).

The bill, sponsored by Ihavandhoo MP Mohamed Shifau, was sent to the Whole-House Committee with the vote of 32 MPs – 31 MPs from ruling MDP and Isdhoo MP Ali Hameed from government coalition partner JP.

The government is pushing to raise the GST from 6 percent to 8 percent, and the TGST from 12 percent to 16 percent.

According to Finance Ministry, the government wishes to implement the change with the beginning of 2022.

During the debate on the bill, Thimarafushi MP Abdulla Riyaz said an increase in GST would further widen the income gap between Maldives’ rich and poor.

Many opposition MPs argued it is not the right time for a tax hike on the common people.