Maldives Inland Revenue Authority (MIRA) has warned that it will take action against businesses that have disproportionally increased the price of goods following the changes to tax rate.
Speaking to local news, Assistant Commissioner General Ahmed Shareef said MIRA has received complaints that businesses have increased the price of goods after the changes to the tax rate came into effect. He highlighted that the Goods and Services Tax (GST) was increased from 6% to 8%, which wouldn’t have a noticeable impact on prices, but that some businesses have added a further 8% to increase the price of goods. He warned that MIRA will investigate and take action on these businesses.
The price of goods at the Male’ Local Market remains stable, with price hikes for broccoli, capsicum, bell pepper, and some other goods. Lemons, which are not taxed, have seen a noticeable price hike due to issues with importation. Peppers are currently the cheapest.
The sixth amendment to the Goods and Services Tax Act increased the GST from 6% to 8% and Tourism Goods and Services Tax (TGST) from 12% to 16% on January 1.