Gov’t to Review Tax Rates Under New Revenue Strategy

The government has outlined a timeline for reviewing various tax rates, as detailed in the recently published ‘Medium Term Revenue Strategy’ by the Ministry of Finance.

According to the strategy, the Airport Taxes and Fees (ATF), which include Departure Tax, Airport Service Charge, and Airport Development Fee, will undergo a review within the year.

advertisement

The report also indicates that several other taxes are scheduled for review in 2025. These include the Green Tax, Import Duty, Corporate Income Tax, Goods and Services Tax (GST), and the Tourism Land Rent.

Minister of Finance Dr Mohamed Shafeeq commented on the review process, noting that while the rates of these taxes will be examined, it is yet to be decided if they will be increased. 

In addition to reviewing tax rates, the Ministry plans to expand the tax base. The strategy document states that measures to broaden the GST base will be implemented in the coming year.

This year’s budget estimates that MVR 26 billion will be generated from taxes, with 50 percent of this amount already collected.

The Medium Term Revenue Strategy report emphasises the need to boost tax revenues, particularly in light of rising state capital expenditure and increasing debt repayment obligations.

The government is also undertaking various measures to improve the country’s financial situation. These include the adoption of targeted subsidies and the reform of State-Owned Enterprises.