Tourism Employees Association of Maldives (TEAM) declares its support to state’s decision to hike Goods and Services Tax (GST) for 2023.
The association released a statement, noting that the government’s preposition is an imperative amendment. According to TEAM, this amendment to increase taxes on business will positively impact the tourism industry. It adds the bump in taxes will reflect in a subsequent surge in state revenues, which can be translated to improvement of the country’s economy.
Moreover, this decision will work in favor of incrementing salaries of tourist industry employees, TEAM adds.
TEAM also identifies that increment in tourism receipt rates, such as TGST will push a progressive increment on Business Profit Tax (BPT) as well as Income Tax.
Government is proposing a GGST hike from 6% to 8% and a TGST hike from 12% to 16%. A decision that has been met with criticism by tourism industry giants. Many observe this change could adversely impact the local tourism sector.