Ibrahim Naufal (Ibu)   11 January 2023 - 03:02 AM
Maradhoo MP Ibrahim Shareef has stated today that GST is not the only reason why prices of goods have become higher.

The GST and TGST rates have been increased following the passing of the amendment to the tax bill in the Parliament proposed by the government. Regarding this, the public have been complaining that the prices of goods are rising in the market.

On the issue of rising commodity prices, MP Shareef said that if commodity prices continue to rise in the international market, it will also affect the Maldivian market. Therefore, the prices of goods in the market are not only rising due to the change in GST.

The amendment to the tax bill raised the Tourism Goods and Services Tax (TGST) from 12 percent to 16 percent and the non-tourism related GST from 6 percent to 8 percent.

The government is also spending millions of rufiyaa on subsidies as the prices of oil and many other basic commodities have risen in the world market. Therefore, even the Finance Minister has said that the government should increase its revenue and reduce its expenditure to sustain the economy.

The global economy is being adversely affected by the outbreak of COVID-19 and the Russia-Ukraine war. As a result, some countries have even gone bankrupt. However, the World Bank has praised the decisions made by the Maldivian government to avoid such a fate.