Former President Mohammed Nasheed has said that as the people welcomed the new year, the high tax was a challenge in Maldives.
In a tweet to send his New Year greetings, he said that with the tax hike from 12:00 am last night, this year will be a year of inflation and higher prices of goods.
The 6th Amendment to the Maldives Goods and Services Tax Act (Law no. 20/2022) was ratified on November 22, 2022 increasing the tax rates effective from midnight of January 1, 2023.
Pursuant to this amendment, General Sector Goods and Service Tax (GGST) – which covers the domestic sector – will increase from 6% to 8% while Tourism Sector Goods and Services (TGST) will increase from 12% to 16%.
Nasheed strongly criticized the government’s tax increase and opposed it. Nasheed also criticized President Ibrahim Mohammed Solih and the government for proposing a tax increase in parliament.
While he is currently campaigning for this year’s presidential primary and has repeatedly said he will cut taxes if he wins power.
In the tweet, Speaker Nasheed said he had new hopes despite the challenges. There is hope that things will move in the right direction despite the growing problems caused by climate change.