The Parliamentary Group (PG) of the Maldivian Democratic Party (MDP) has issued a three-line whip to pass the government-proposed amendment bill to increase taxes in 2023 as proposed by the government.
Ministry of Finance stated the government decided to implement tax hikes in response to changes in the global market and in accordance with the current economic situation, which threatens to become worse if no measures are taken. As such, the government will be decreasing expenditure and implementing a variety of measures to increase state revenue, including increasing TGST from 12% to 16% and increasing GST from 6% to 8%. The changes are proposed to be implemented in January 2023.
MDP PG held a meeting and decided to issue a three-line whip to pass the bill as proposed by the government. The Parliamentary Committee of the Whole House is now evaluating the government-proposed amendment bill. Members of the whole house committee discussed holding meetings with the relevant authorities and experts from various industries. They also highlighted the importance of collecting data on the current global economic situation and the changes in the Maldivian economy, adding that the public should be informed on the potential impact of introducing tax hikes.
The finance ministry estimates that the tax hikes will increase the yearly state revenue by USD194 million, which would benefit the state and its citizens.