In July 2022, the Finance Ministry along with the Tourism Ministry officials met with industry stakeholders MATI, MATATO, NBAM, NHGAM, ATA, MAYA etc. to share information on the increment of taxes in early 2023, in spite of not having an exact date of implementation. These meetings shed light on the proposed GST increments from 6% to 8% and TGST from 12% to 14% - a total increment of 2% from both the taxes. Many across the industry continue expressing their concerns on tax increment and advising authorities of the challenges in keeping up with competitive markets. What is your take on the matter?

PUBLISHED November 07, 2023

Yoosuf Riffath
Association of Travel Agents, Maldives
I agree with the increase of tax. 2% of an increase is nothing. Most of the resorts reduce their rate from 20% to 55 % off throughout the year. Even our neighboring countries still charge higher taxes from 18% up to 30% taxes.
I estimate that an average household will have an average 2500 rf/month because of the 2% increase in GST. GST being a regressive tax, the people who get less salary will feel the pinch more, the rich will not notice it. The GST increase is the last thing that should happen.
While taxation is the main component of government income, timing is very important when it comes to changes in taxation. I like to believe, this is not the right time to make any changes to the current rate of TGST or GST. It certainly will not achieve what the government is aiming to achieve with this increment.