GST to be levied on MTCC transport services from next week onwards

Maldives Transport and Construction Company (MTCC) has said that Goods and Services Tax (GST) will be levied on its ferry and bus services from 15 January onwards.

Transport Executive of MTCC Ismail Farig told Sun Online today that under the GST Act, GST must be levied on services provided by MTCC as the company is registered with Maldives Inland Revenue Authority (MIRA); and that GST will thus be imposed on ferry and bus services provided by the company from 15 January onwards.

“We did not increase our prices in any way. We added 6 percent GST to the prices of our services. GST will be levied on ferries going to Hulhumale’, Villingili, Gulheefalhu, Thilafushi and Provinces, as well as the Hulhumale’ bus service,” he said.

GST is already being imposed on the express service, parking service and cargo ferry service provided by MTCC.

From 15 January onwards, inclusive of GST, Villingili ferry service will cost MVR3.18 and Hulhumale’ ferry service will cost MVR5.30. Out of province ferry services, ferries between islands will cost MVR21.2 and ferries to Male’ will cost MVR53. Hulhumale’ bus service will cost MVR2.12.

Farig said that the introduction of GST will not result in any problems with regard to small change for MTCC as the company has made the necessary preparations.

GST was introduced in 2011 and increased to 6 percent in January 2012.