Maldives: Technical Assistance Report-Modernizing the Goods and Services Tax

June 16, 2022

Preview Citation

Format: Chicago

Maldives: Technical Assistance Report-Modernizing the Goods and Services Tax, (USA: International Monetary Fund, 2022) accessed November 23, 2024

Summary

This report reviews the Goods and Services Tax (GST) regime in the Maldives and identifies policy and legal reform options to support its modernization, as well as enhancing efficiency, equity, and revenue mobilization. Despite five existing amendments to the Goods and Services Tax Act (GSTA) and 28 amendments to the associated regulations, the core parameters of the GST have barely changed in nearly 12 years. In addition, rapid changes to global business models and the increasing digitalization of the Maldivian economy have made key features of the legislation – such as place of supply rules – increasingly inadequate. The mission identified several key GST policy reforms and proposed legal redrafting recommendations that should be prioritized by the authorities in the upcoming reform window. Table 1 summarizes the potential revenue implications and implementation timeline of the main policy measures proposed.

Subject: Economic sectors, International organization, Monetary policy, Taxes, Technology

Keywords: Act amendment, Consumption taxes, Digital currencies, Global, GST payment, South Asia, Tax allowances, Tourism, Tourism Goods and Services Tax, Value-added tax, VAT C-efficiency, VAT revenue

Publication Details

Pages:

72
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2022/187
Stock No:

1MDVEA2022002
ISBN:

9798400215360
ISSN:

1934-7685

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