The amendment proposed by the government to raise GST and TGST rates next January has been passed by the Committee of the Whole House in Parliament today.
The amendment to the tax bill passed with the votes of 50 members. The minority that voted against it had only 19 members.
The amendment was proposed by the MP for the Ihavandhoo constituency, Mohamed Shifau.
The main purpose of the bill is to increase state revenue to aid with facing the changes in the global economy. According to the government, if steps to increase state revenue are not taken, the revenue would not be enough to manage the recurrent expenditures in this economy.
The increased tax rates that were passed are GST from 6% to 8% and TGST from 12% to 16%.
The World Bank has praised this decision of the government and stated that it will aid the government in applying improvements to the economy.
The amendment to the tax bill passed with the votes of 50 members. The minority that voted against it had only 19 members.
The amendment was proposed by the MP for the Ihavandhoo constituency, Mohamed Shifau.
The main purpose of the bill is to increase state revenue to aid with facing the changes in the global economy. According to the government, if steps to increase state revenue are not taken, the revenue would not be enough to manage the recurrent expenditures in this economy.
The increased tax rates that were passed are GST from 6% to 8% and TGST from 12% to 16%.
The World Bank has praised this decision of the government and stated that it will aid the government in applying improvements to the economy.
