Maradhoo Constituency Member of Parliament Ibrahim Shareef announces his support for Government’s plan to raise GST and TGST.
In a tweet posted, the Parliamentarian said that he fully supports the decision, adding that ‘belt tightening’ was needed.
Government had announced their intention to raise taxes, effective six months after the motion is passed. The Ministry of Finance is proposing to hike GST from six percent to eight percent, while TGST will be raised to 16 percent from the present 12 percent.
While International Monetary Fund (IMF) had supported the plans to hike GST and TGST, the agency had asked the Government to be mindful of local market prices and international economic trends, and to raise taxes only after 2024.
In spite of rising costs outpacing earnings, the Government continues to create more political positions. This was in direct defiance of a Finance Ministry circular issued in June, that had instated a hiring freeze and changes to pay and overtime structures.
The Government had also announced that fuel subsidies are under review to minimize costs. The announcement was made in President’s speech to the nation on occasion of the country’s 57th Independence Day.