New GST and T-GST tax hikes to take effect on 1st January 2023

31 Dec 2022 | 14:30
Local Market

Given the high inflation experience in 2022, the government of Maldives is set to increase its good and service taxes from 1st January onwards. 

The new tax rate drew heavy criticism across the political spectrum has been passed by parliament and ratified by President Ibrahim this year. 

According to the ratified bill, The new rates are set to come into effect from 1st January 2023, with GST increasing to 8% and T-GST increasing to 16%. As a result, multiple businesses have started to adjust to the new tax rates. 

Currently, public services are subject to a 6% tax, whilst tourist attractions impose an 8% tax. Despite the hike in T-GST and GST, the Green tax and other taxes are set to remain the same. 

Multiple Business organisations and the public have raised concern over the new tax hike stating that the new tax hike could damage multiple businesses and affect the incomes of the poor.