Goods and Services Tax increased due to volatile changes to the global economy: Sixth amendment to the Goods and Services Tax Act of Maldives [Law no. 10/2011]
On 22nd November 2022, the sixth amendment to the Goods and Services Tax Act of Maldives (Law no. 10/2011) was ratified.
The amendment revises the Goods and Services Tax rates related to both General Goods and Services and Tourism Goods and Services Tax sector.
Under the amendment, the General Goods and Service Tax rate is to increase from 6% to 8%, and Tourism Goods and Services Tax rate is to increase from 12% to 16%.
This amendment aims to increase state revenue in response to fiscal strategy projections that show the need for actions to accommodate recurring expenses amidst volatile changes to the global economy and is to be implemented from the 1st of January 2023.