Former Vice President of the Maldives Dr. Mohamed Jameel claimed that the departure of President Ibrahim Mohamed Solih’s administration from office guarantees poverty and privation to the Maldivian people.
In a tweet, Dr. Jameel stated that President Solih’s administration imposed hefty taxes on the people to accommodate their prodigal political ventures. He asserted that this administration had the most number of political appointments and political trips.
The amendment to the Goods and Services Tax Act proposed by the Member of Parliament for the Ihavandhoo constituency, Mohamed Shifau, on behalf of the government was approved, with a consensus of 55 MPs voting yes, to raise levied taxes, and ratified by the president on November 12, 2022.
The tax bill proposed by the government put forth to raise Goods and Services Tax (GST) and Tourism Goods and Services Tax (TGST) rates from 6 percent and 12 percent to 8 percent and 16 percent, respectively, effective January 2023.
According to the Ministry of Finance, the government raised taxes to settle recurrent expense accounts of the state. The annual budget proposed for next year included an estimate of MVR 3.6 billion to be generated through increased tax rates to settle these accounts.