The government has formed a timeline within which they will be reviewing certain tax rates.
The government has formed a timeline within which they will be reviewing certain tax rates.
In the 'Medium Term Revenue Strategy' published by the Ministry of Finance, they have announced that Airport Taxes and Fees (ATF) will be reviewed within the year. ATF includes Departure Tax, Airport Service Charge and Airport Development Fee.
As per the report, a number of taxes are due for review in 2025. This includes reviewing the rates of the Green Tax, Import Duty, Corporate Income Tax, Goods and Services Tax, as well as the Tourism Land Rent.
Minister of Finance Dr Mohamed Shafeeq stated that although these taxes are going to be reviewed, it is so far undecided whether the rates will be raised. Any changes that will be brought to the tax rates will only be known after the review is completed, he said.
In addition to reviewing tax rates, the Ministry has also decided to expand the tax base. The plan states that necessary steps to broaden the tax base of GST will be taken in the coming year.
This year's budget estimates MVR 26 billion will be received in taxes. As of now, 50 percent of that amount has been received.
The Medium Term Revenue Strategy report highlights that steps need to be taken to increase tax revenues at this moment when the State's capital expenditure has increased and the debt repayment requirements have increased.
The Government has been planning several actions to improve the financial situation of the country. Under this, the government has decided to adopt targeted subsidies, and to reform State Owned Enterprises.
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