The government has introduced an amendment to the Goods and Services Tax Act to increase the Tourism Goods and Services Tax (TGST) from 16 to 17 percent.
The amendment was introduced by MP Mohamed Musthafa on behalf of the government.
According to the amendment, TGST will remain at the current rate of 16 percent until May next year. The increase to 17 percent will take effect from June that year.
The amendment is estimated to bring in an additional $200 million as revenue.
GST was increased to its current 8 percent and TGST to 16 percent on January 1, 2023.
