Discussions commence on raising GST, TGST

Shoppers are pictured outside an outlet of VB Mart in Male' City. (Sun Photo/Fayaz Moosa)

The government has initiated discussions with relevant parties regarding increasing the Goods and Service Tax (GST) and Tourism Goods and Service Tax (TGST).

Finance Ministry’s Communications Director Lamman Hameed told Sun on Sunday afternoon that the government was holding discussions with stakeholders to draft a fiscal strategy.

 Lamman said subjects under discussions include proposed changes by the government, which would be publicized soon.

Boating Association’s President Ismail Hameed told Sun that government officials met with the association.

He said that the government proposed raising the GST from 6 percent to 8 percent, and raising the TGST from 12 percent to 16 percent.

The government discussed making the change within the next six months.

Ismail said businesses needed a year or a year and a half to prepare for such a change.

GST and TGST are one of the biggest sources of revenue to the state. An increase in the taxes will lead to an increase in the price of goods and services.