Maldives

Maldives Approves Tax Increase – TTR Weekly

Maldives Approves Tax Increase – TTR Weekly


Male, November 23, 2023: Leaders of the Maldives tourism and hospitality industry lost their fight to prevent an increase in the country’s tourism goods and services tax earlier this week after parliament approved an amendment to raise the tax , which will come into force in January 2023.

The government had earlier proposed raising the Tourism Goods and Services Tax (TGST) from 12% to 16%, while increasing the GST from 6% to 8%.

Photo Credit: Creative Travel India

The Tourism Goods and Services Tax will increase from 12% to 16% effective January 1, 2023, and will apply to all goods and services sold at resorts.

On Tuesday, Maldivian President Ibrahim Mohammad Saleh approved the amendment to raise the tax rate. From January 1, travel companies quoting prices for vacation packages around the world will need to revise their prices.

In a report by Maldives news channel PSM, Finance Minister Ibrahim Ameer claimed that despite the tax hike, inflation in the country will remain low compared to other countries.

He estimated that the tax increase was just one of many factors that would lift inflation from around 3% this year to 5.4% in 2023, noting that it was still well below the EU’s 11% inflation rate and the UK’s 10.4% inflation rate.

The government expects to generate $63 million and $136 million from GST next year. As a result, the tax changes are expected to generate $195 million in revenue.

(Source: PSM Public Welfare Media)

STB 690X120



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button