President ratifies the tax hikes amendment

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President Ibrahim Mohamed Solih ratified the sixth amendment bill to the Goods and Services Tax Act (Law Number 10/2011).

The amendment seeks to increase state revenue, following fiscal strategy forecasts that indicate the requirement for measures to accommodate recurring expenditures amidst volatile changes to the global economy.

Parliament passed the bill at its 39th sitting of the third session, held on Wednesday, November 16, 2022.

The amendment raises the Goods and Services Tax (GST) rate from 6 to 8 per cent. In addition it also increases the Tourism Goods and Services Tax (T-GST) rate from 12 to 16 per cent. The change will take effect on January 1, 2023.

The Law is now published on Government Gazette.

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