The Goods and Services Tax (GST) and Tourism Goods and Services Tax (TGST) came into effect on Sunday, January 1, 2023.
The increase to the Tourism Goods and Services Tax (TGST) and the Goods and Services Tax (GST) was ratified by President Ibrahim Mohamed Solih in November 2022.
The amendment would implement a hike in GST to 8% from 6% and TGST to 16% from 12% effective from Sunday.
Maldives Inland Revenue Authority (MIRA) has advised the public to take note of the hike in tax rates. As per the statement released by MIRA, a fact sheet on the changes in the tax will be available on MIRA website.
MIRA further added that the fact sheet includes information on the ‘cut-off time’ and how GST will be calculated. As such, businesses that do not operate 24 hours will need to implement the new tax rate from the minute their businesses open for operation on 1st January 2023. The new tax hike will come into effect at midnight for businesses that operate 24 hours.
All goods and services must state prices inclusive of the new GST rates, MIRA stated.
