Parliament accepts bill on increasing GST and TGST

Parliament has approved a Bill proposing an increase to the Goods and Service Tax (GST) and Tourism Goods and Service Tax (TGST).

The proposed amendment increases GST to eight percent, while TGST will increase to 16 percent.

The Bill proposed by the government was sponsored by Ihavandhoo Member of Parliament Mohamed Shifau, and was accepted with the votes of 32 members out of 42 present. Eight members had voted against accepting the Bill.

The Bill has since been forwarded to the Whole-House Committee for further review.

The government is pushing to implement the change at the beginning of 2023, in a bid to increase state revenue in the face of changing global economic situation.