Tourism Employees Association of the Maldives (TEAM) has endorsed the government-proposed tax hikes.
In a press release, TEAM stated the government-proposed amendment bill to increase taxes in 2023 is crucial for ensuring the growth of state revenue, a stable economy, and an increase in employee wages. The association expressed support for progressively increasing the Tourism Goods and Services Tax (TGST), Business Profit Tax (BPT), and Income Tax, as it will reduce wealth inequality. It added that the government should also focus on recovering unpaid taxes and land lease payments.
Some stakeholders in the tourism sector have criticised the government’s proposal to increase the Goods and Services Tax (GST) from 6% to 8% and the Tourism Goods and Services Tax (TGST) from 12% to 16%. However, the government has stated that tax hikes are necessary to increase state revenue and ensure economic growth.