Pres ratifies tax hike bill

President Ibrahim Mohamed Solih ratified on Tuesday the sixth amendment bill to the Goods and Services Tax Act. The Parliament passed the bill at its 39th sitting of the third session, held on Wednesday, November 16, 2022.

The amendment seeks to increase state revenue, following fiscal strategy forecasts that indicate the requirement for measures to accommodate recurring expenditures amidst volatile changes to the global economy.

The amendment raises the Goods and Services Tax (GST) rate from 6 to 8 percent and the Tourism Goods and Services Tax (T-GST) rate from 12 to 16 percent. The change will take effect on January 1, 2023. Following ratification, the law has been published in the Government Gazette.